HSBC Malta sets up €100m fund to help businesses
HSBC Malta has created a €100 million fund to support Maltese businesses. It forms part of HSBC Group’s new US$5 billion global working capital fund aimed to ensure that business customers continue to have access to appropriate credit through the current financial and economic crisis.
The fund represents new money, over and above what HSBC would normally expect to lend in the current business environment, and will be funded from HSBC’s own resources, the bank said.
“This is a difficult time for business in many economies including Malta. Businesses are the lifeblood of the Maltese economy and it is their continued success that will provide a stimulus to create economic growth," Alan Richards, HSBC Malta’s CEO Malta, said.
"Customers are rightly looking to see how banks can help. I am pleased that HSBC is using its financial strength to help our business customers by delivering this US$130 million fund.”
The fund will supply working capital to help businesses with their cash flow needs, particularly utilising invoice finance for domestic needs and trade finance products to support businesses that trade or aspire to trade internationally. This fund will help customers with fundamentally sound businesses to weather short-term shocks caused by the downturn."
Finance will be allocated on a case-by-case basis using the bank’s normal lending criteria.
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m sciortino
Dec 18th 2008, 06:23
BOV has a liquidity ratio of over 55% when the prudential statutory limit is 30%. This translates to Eur 2,600,000,000 (2.6 billion) which is not being leant to Maltese businesses but is used to finance overseas borrowers by way of fixed interest instruments. I am sure that HSBC Malta has similar funds. Therefore I do not expect that any sound Maltese request for finance from a bank has been turned away because the bank had no money to lend.
d.attard
Dec 17th 2008, 12:05
Quote: Finance will be allocated on a case-by-case basis using the bank’s normal lending criteria unquote.
Moreover, funds will be lent under normal invoice and trade financing. This already happens, so what's new?
I agree with the impression that this is just a pr exercise.
M Sciortino
Dec 17th 2008, 11:21
Banks in Malta are flush with money and have no shortage of liquidity. They can lend as much as they want to. This is just a PR exercise on the part of HSBC.
lgalea
Dec 17th 2008, 11:11
As they say, Nero played the harp while Rome was burning.
Nick Borg
Dec 17th 2008, 10:14
Like the PM cares. He is under the mistaken impression that our economy is so strong that it can withstand the shock of huge utility he only theing the Maltese economy is getting for Christmas is a huge kick in the unmetionables from the government...
Ho ho ho!!
Randolph De Battista
Dec 17th 2008, 09:46
Good news indeed. But I would have expected the Prime Minister to ask the banks for this fund just like in other European countries!