During a recent conference entitled, “Investment and Investment Finance – the case of Malta”, organised jointly by the European Investment Bank (‘‘EIB’’) and the Central Bank of Malta, Finance Minister Edward Scicluna stated that the strategic objective of the Malta Development Bank[1] is to offer financial support for viable operations where the market is unable or unwilling to take any risks in such activities. The Minister noted that the intention of setting up the Malta Development Bank was to complement the operations of all market players in the financial system rather than competing with them.
The Malta Development Bank - upcoming projects and funds
The Finance Minister detailed that the Government is going to be the ultimate shareholder of the Malta Development Bank while the members of the Board of Directors of the Malta Development Bank will be announced shortly. The Government is expected to allocate €200 million of funds targeted towards infrastructure projects that contribute to Malta’s development. The funds will also be used to aid SMEs where financing is not accessible in the market. Through the Malta Development Bank, the country can also benefit from opportunities to enhance the use of European funds by combining its resources with other European funding platforms.
The Finance Minister also noted that the Malta Development Bank will incentivise credit institutions to participate in syndicated loans for local infrastructure development, and also provide guarantees. Alternatively, the Malta Development Bank could also co-finance such products with credit institutions or finance such products directly under a Public-Private Partnership initiative.
Investment and Investment Finance – the case of Malta
During the conference, EIB vice-president, Dario Scannapieco, stated that he is confident that the Malta Development Bank will be attracting more investment in Malta. The ECB vice-president noted that the Malta Development Bank will be a catalyst for the growth of the Maltese economy through increased competition and new employment opportunities.
[1] Approved by the European Commission on the 26th August 2016
