The German government is prepared to help Malta with technical expertise for the setting up of the Malta Development Bank, deputy Prime Minister Louis Grech said in Parliament.

Replying to a Parliamentary question by Nationalist MP Claudio Grech, the minister said he had been corresponding with German Finance Minister Wolfgang Schauble on the possibility of help and collaboration in setting up the bank.

Preparatory work on the setting up of the bank has been under way for months and working group was set up with multi-pronged tasks.

These included research, market technical studies, recommendations on the bank’s objectives and probable operating sectors; and what types of loans or other financing it should be able to offer.

Mr Grech said the working group was also tasked with proposing the bank’s organisational structures, modus operandi and supervision; identification of capital and other resources; proposals of the bank’s ownership structure and a draft statute.

The working group was haing talks with the EC’s director-general for competition, who would have to approve the setting up of the bank, as well as with Eurostat.

Several meetings had also been held with other promotional banks.

It was planned that by the end of the year the working group would have submitted its proposals and achieved enough progress for the necessary legislation to be drafted.