Last Updated on Wednesday, 12 June, 2024 at 1:52 pm by Andre Camilleri
- The EIF guarantees will facilitate up to €44 million in targeted financing for small and medium-sized enterprises and small mid-caps in Malta.
- It is the second EIF operation in Malta backed by InvestEU, the European Union programme that aims to mobilise investments for €372 billion by 2027.
The European Investment Fund (EIF), part of the EIB Group, has joined forces with the Malta Development Bank (MDB) in further driving the green transition in Malta, and supporting cultural and creative businesses by providing the latter with two guarantees totalling €20 million. The operations aim to foster environmental sustainability and cultural activities while boosting the country’s economic development and job creation. It is expected that this new agreement will contribute to mobilise investments in the real economy of around €44 million.
The EIF support, backed by InvestEU, includes a €15 million guarantee to empower small and medium-sized enterprises (SMEs) and small mid-caps across Malta to undertake green projects, thereby contributing to a low-carbon economy and mitigating the adverse effects of climate change. Additionally, a €5 million EIF guarantee line will support SMEs in the cultural and creative sectors, aiming to bolster an ecosystem that often faces difficulty accessing finance.
This agreement builds upon the successful €30 million operation between the European Investment Bank (EIB) and MDB at the end of 2023, which aimed to back a wide range of green initiatives such as electric vehicle charging infrastructure, solar photovoltaic installations, energy efficiency in both public and private buildings, as well as waste recycling projects.
Kyriacos Kakouris, EIB Vice-President, remarked: “We are glad to further strengthen our partnership with the Malta Development Bank to boost green investments and join efforts also in support to a thriving, agile and profitable creative and cultural space. With the support of InvestEU, both green and cultural investments in Malta will contribute to economic growth locally and throughout Europe.”
“Through this agreement, under the InvestEU program, the EIF and the MDB are going to support SMEs in Malta in their journey towards sustainability,” said EIF Chief Executive Marjut Falkstedt. “By providing access to finance at favourable conditions and expertise, we aim to empower businesses to embrace green practices, thereby fostering environmental stewardship while driving job creation.”
MDB Chairman Leo Brincat said: “We want to help make sustainability and creativity significant contributors to Maltese economic growth and job creation. The MDB is proud to have been entrusted with a significant guarantee that will allow us to develop instruments to support both the green transition and the creative and cultural sector in the years ahead.”
The EIB Group in Malta
The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), has been a significant supporter of the Maltese economy since 1979, providing close to €1 billion in funding. Our support extends to various areas, including facilitating access to finance for small and medium-sized enterprises (SMEs), investing in 5G mobile infrastructure and financing the construction of about 750 social housing units. Furthermore, we have been involved in financing flagship infrastructure projects such as a new parliament building, an open-air theatre and the restoration of Valletta’s City Gate – a UNESCO World Heritage site. Examples from 2023 include €30 million in financing to the Malta Development Bank (MDB) to boost the green transition of SMEs and public-sector entities as well as an EIF operation with Malta’s Ministry of European Funds and Land – backed by InvestEU – to make €16.5 million available to small businesses to foster innovation and job creation in the country.
