ARTICLE
16 May 2020

EU Commission Approves Malta's Guarantee Scheme

KM
KPMG Malta

Contributor

KPMG Malta logo
With a staff compliment of around 350, including 28 principals, KPMG in Malta is one of the leading providers of audit, tax and advisory services. Our vision is to be the clear choice for our clients, our people and our community. While our work is often complex, our vision is simple: to be the clear choice in professional services – for our clients, for our people and for the communities we work in.
EU Commission has approved Malta's guarantee scheme for working capital loans granted by commercial banks to support companies affected by COVID-19.
Malta Coronavirus (COVID-19)

The EU Commission has approved Malta's guarantee scheme for working capital loans granted by commercial banks to support companies affected by the COVID-19 outbreak. The scheme has an estimated budget of ?350 million. The scheme was approved under the State Aid Temporary Framework to support the economy in the current context.

The Commission found that the Maltese measure is in line with the conditions set out in the Temporary Framework. In particular: (i) the underlying loan amount per company is linked to cover its liquidity needs for the foreseeable future, (ii) the guarantees will only be provided until the end of this year, (iii) the guarantees are limited to a maximum of six years, and (iv) guarantee fee premiums do not exceed the levels foreseen by the Temporary Framework.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More