COVID-19 Aid Package valued c. €1.8bn,
12.9% of Malta’s Gross Domestic Product (GDP) in 2019
The Prime Minister of Malta, the Minister of Finance and Financial Services and the Minister of the Economic have tonight unveiled an aid package aimed at supporting the business community, totalling around €1.81 billion.
The COVID-19 Malta Relief Package
Healthy Maltese Government Finances and IIP Fund to support Maltese Economy to face Covid-19 Downturn through liquidity injections and bank guarantees. Up to €700 million in tax deferrals and up to €900 million in loan guarantees. Postponement of income tax, VAT and National Insurance dues for March & April for Employers & Self-employed. Up to €900 million in Government bank guarantees for an additional access of €4.5 billion in credit. The NSDF IIP Fund to provide €150 million in bank guarantees.
Prime Minister Robert Abela described the measures as "strong and ambitious" and said that they would "protect people and all workers who work in Malta, without any distinction".
He was joined by Finance Minister Edward Scicluna and Economy Minister Silvio Schembri to unveil the details in a news conference on Wednesday night.
Minister Scicluna confirmed that the rate of economic growth was expected to slow but he insisted "this storm is temporary".
COVID-19 Malta Relief Package
For businesses who suffered a complete suspension of operations, the government will pay for 2 out of every 5 days of work lost.
The self employed, who have also lost work, will receive a benefit for two days per week, also capped at €800 euro per month per employee. For the self-employed who hire people, the employer will also get government coverage for three of five days of lost work.
Companies that stalled production by 25 percent will be guaranteed pay for one day per week.
Employees who lost their job from March 9 will also receive a special unemployment benefit, capped at €800 per month. And people with disabilities who are unable to work from home or stop working due to health concerns, will get the same benefit.
Government housing subsidies will increase for families where one of the parents lost their job or who had to stop working to take care of children, Schembri announced.
Up to €700m in Tax Deferrals
Income tax, VAT and National Insurance contributions due for March and April 2020 shall be postponed, a measure valued at €400m to €700m.
up to €900m in Loan Guarantees
If needed, the Maltese Government is ready to commit a further €900 million in guarantees, providing access to an additional access to credit of €4.5 billion.
3 month Moratorium on Bank Loans: Personal and Business
Local banks will be able to accept all requests for a 3 month moratorium on bank loan payments on all personal and business bank loans.
€210 million Government Expenditure
The Maltese Government will be injecting €210 million in assisting the economy and saving jobs. This is equivalent to 1.5% of Malta's GDP in 2019.
An additional €35 million for health authorities to fight Covid-19.
Up to €16m for 12,000 Families with Children who have both parents / Guardians working in the Private Sector to get €800 per month.
Minister Schembri announced a two month additional benefit for the estimated 12,000 families, who could not telework or who had to take leave to take care of children during the period of school closures. The government will cap this benefit at €800 per month per affected employee.
€350 per employee on Quarantine Leave
