The European Commission has approved Malta’s €350 million state aid scheme, noting that it will serve as support for the Maltese economy during the Coronavirus outbreak.
The scheme was approved under the auspices of the temporary framework for state aid, which was adopted as a result of the spread of the novel virus.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €350 million Maltese scheme will enable public guarantees on loans to support the Maltese economy during the coronavirus outbreak. It will help businesses cover immediate working capital needs and continue their activities in these difficult times. We continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, in line with EU rules.”
Malta notified to the Commission, under the temporary framework, of a guarantee scheme for working capital loans granted by commercial banks to support companies affected by the coronavirus outbreak. The scheme has an estimated budget of €350 million.
The Commission found that the Maltese measure is in line with the conditions set out in the Temporary Framework. In particular, they found that the underlying loan amount per company is linked to cover its liquidity needs for the foreseeable future, the guarantees will only be provided until the end of this year, the guarantees are limited to a maximum of six years, and guarantee fee premiums do not exceed the levels foreseen by the Temporary Framework.
The Commission concluded that the measure is “necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State.”
