Small businesses will have access to bank finance at beneficial rates and conditions under a fresh EU scheme for which the government has allocated €15 million.

At an information session for bank executives yesterday, EU Funds Parliamentary Secretary Ian Borg said Malta was one of only two countries to dedicate part of its structural funds for small and medium enterprises.

“We believe in small and medium enterprises and this is why we responded positively to the European Commission’s call for investment to be directed towards SMEs,” Dr Borg said.

The government will shortly issue a call for intermediaries to manage the scheme with the aim of rolling it out by July.

The scheme will provide guarantees of up to 80 per cent, which would enable SMEs to take out loans for expansion or diversification.

Dr Borg said estimates showed that more than 800 SMEs could benefit from the scheme, which could see a collective investment of some €60 million. The European Investment Bank is also a partner in the scheme.

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