Malta Development Bank unveils aid scheme for businesses hit by COVID-19

Maltese lender Bank of Valletta and the Malta Development Bank have launched the BOV-MDB COVID Assist, a financing scheme aimed at helping businesses facing disruptions during the COVID-19 pandemic.   

SMEs can take a loan up to €4 million, while large enterprises can apply for up to €8 million, subject to bank’s approval. Repayment terms can range between 18 and 72 months, with an inclusive moratorium period of six months that can be extended to 12 months depending on particular circumstances of the business. 

BOV-MDB COVID Assist will enable companies to meet working capital requirements, aiding them with running costs such as employees’ wages and salaries, bills, pending invoices, acquisition of stock, maintenance costs and expenses that are critical for the smooth running of the business.  

It was developed under the MDB COVID-19 guarantee scheme. The government has allocated a €350 million fund to the Malta Development Bank to set up and manage the MDB COVID-19 guarantee scheme with the purpose of guaranteeing loans granted by commercial banks. The BOV-MDB COVID Assist will be available until 31 December.