European Commission authorises funding aid for Maltese businesses

The European Commission has authorised a measure to help Maltese businesses deal with the current economic crisis.

The measure has been authorised under the EC Treaty state aid rules. Aid of up to €500 000 per firm may be granted in 2009 and 2010 to businesses facing funding problems because of the current credit crunch.

The scheme meets the conditions of the Commission’s temporary framework for state aid measures, which gives member sates additional scope to facilitate access to financing in the present economic and financial crisis.

"The scheme will help alleviate the difficulties faced by Maltese businesses affected by the current situation without giving rise to any undue distortions of competition”, Competition Commissioner Neelie Kroes said.

The scheme applies only to businesses which were not in difficulty on July 1, 2008.

The aid will be in the form of direct grants. Limited amounts of compatible aid can be granted up to December 31, 2010.