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Malta Development Bank announces COVID-19 guarantee scheme

The Malta Development Bank (MDB) has announced the launch of the COVID-19 Guarantee Scheme (CGS), which constitutes a fundamental component of the Government’s COVID19 Response Support Programme.

The Government has allocated a fund of €350 million for the MDB to develop the CGS. The fund’s purpose is to guarantee that loans granted by commercial banks in Malta will meet new working capital requirements of businesses facing cashflow disruptions.

The scheme will enable commercial banks accredited by the MDB to leverage the €350 million fund into €777.8 million in new working capital loans, to support all types of local businesses. Eligible working capital costs under the CGS include:

  • salaries;
  • rental costs;
  • energy and water bills and fuel;
  • unpaid invoices due to a decrease in revenues;
  • acquisition of material and stock for the continuation of business;
  • expenses directly related to contracts which were cancelled or postponed because of the present situation;
  • maintenance costs


Who can apply?

Businesses of any size and type can apply for loan amounts that can go up to €5 million, depending on the size, wage bill and turnover of the applicant. Under the CGS, businesses can also benefit from improved access to liquidity, at lower interest rates and with a repayment period of up to six years. In addition, the CGS will provide much-needed breathing space for businesses by providing a six-month moratorium on both the interest payments as well as on capital repayments. The moratorium period can be extended by the commercial banks to one year on a case-by-case basis.


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We will keep on publishing updates as soon as they are made public. In the meantime, you can get in touch with one of our experts, who will be able to discuss with you how the above measures will affect your organization and guide you accordingly.

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