Current Affairs
European Commission approves Malta’s guarantee scheme of €350 million in economic aid due to COVID19

The European Commission has approved the guarantee scheme by the Maltese Government to support the economy in the context of the Coronavirus pandemic. The scheme was approved by the Temporary Framework for State Aid which has been put into place for this purpose.

Executive Vice President Margrethe Vestager, who is responsible for public health and competition, said that the Maltese scheme of €350 million means that Government guarantees will be able to be given to support the Maltese economy during this pandemic. She added that this will be of help for businesses to cover their immediate needs with an operational capital, and to continue their activities in these difficult times.

Malta has informed the Commission, according to the Temporary Framework, of the loan guarantees for operational capital given by its commercial banks in order to support businesses at this time.

The Commission found that the Maltese measure conforms with the conditions laid down by the Temporary Framework. In particular, the amount of the loans available for each company is linked to the need to cover its liquidity for the foreseeable future, and the guarantees will only be given until the end of the year, the guarantees are limited to a maximum of six years, and the premium of tariffs and guarantees are not higher than the levels which have been forecast by the Temporary Framework.

The Commission concluded that the measure is necessary, appropriate and proportionate to remedy the serious chaos in the economy of a member state, in conformity with the treaty of established conditions in the Temporary Framework.