EIF and MDB Collaboration to Foster Economic Development and Job Creation in Malta

EIF and MDB Collaboration to Foster Economic Development and Job Creation in Malta

(IN BRIEF) The European Investment Fund (EIF), in collaboration with the Malta Development Bank (MDB), is set to provide guarantees totaling €20 million to support small and medium-sized enterprises (SMEs) and small mid-caps in Malta. These guarantees, backed by InvestEU, aim to drive the green transition and support cultural and creative businesses, contributing to economic growth and job creation in Malta.

(PRESS RELEASE) LUXEMBOURG, 12-Jun-2024 — /EuropaWire/ — The European Investment Fund (EIF) is set to facilitate targeted financing of up to €44 million for small and medium-sized enterprises (SMEs) and small mid-caps in Malta through its guarantees. This initiative, supported by InvestEU, aims to bolster Malta’s economic development and job creation while fostering environmental sustainability and supporting cultural and creative businesses.

In collaboration with the Malta Development Bank (MDB), the EIF will provide two guarantees totaling €20 million. The first guarantee, amounting to €15 million, will empower SMEs and small mid-caps to undertake green projects, contributing to a low-carbon economy and climate change mitigation. The second guarantee, valued at €5 million, will support SMEs in the cultural and creative sectors, addressing the financing challenges often encountered by this segment.

This agreement builds upon a previous successful operation between the European Investment Bank (EIB) and MDB in 2023, which focused on financing various green initiatives such as electric vehicle charging infrastructure, solar photovoltaic installations, energy efficiency projects, and waste recycling.

Kyriacos Kakouris, EIB Vice-President, emphasized the strengthened partnership with MDB to boost green investments and support the creative and cultural space. He highlighted the role of InvestEU in driving economic growth locally and across Europe.

Marjut Falkstedt, Chief Executive of EIF, underscored the importance of providing SMEs with access to finance and expertise to embrace green practices, thereby promoting environmental stewardship and job creation.

MDB Chairman, Mr. Leo Brincat, expressed the bank’s commitment to making sustainability and creativity significant contributors to Maltese economic growth. He highlighted MDB’s pride in being entrusted with significant guarantees to support 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.

Background information

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment, as well as infrastructure. In this role, the EIF contributes to the pursuit of key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability and more.

The InvestEU programme provides long-term funding by leveraging substantial private and public funds in support of a sustainable recovery in the European Union. It helps to generate additional investments in line with key European priorities, such as the European Green Deal, the digital transition and support for small businesses. The InvestEU programme brings together all EU financial tools to support investment by making project financing simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

The Malta Development Bank (MDB) was set up in 2017 and is Malta’s only national promotional bank. The MDB performs its promotional role in line with public policy with the objective to contribute towards sustainable economic development that benefits the Maltese people in areas including private sector development, skills and technology, infrastructure development, green economy and community services.

Media Contacts:

EIB:
Lorenzo Squintani
l.squintani@eib.org
mobile: +39 366 57 90 312
Website: www.eib.org/press

Press Office:
+352 4379 21000
press@eib.org

MDB:
Joseph Darmanin
joseph.c.darmanin@mdb.org.mt
tel: +356 2226 1700
Website: https://www.mdb.org.mt/press-releases/
info@mdb.org.mt

SOURCE: European Investment Fund