The Gozo Business Chamber, and the Gozo Tourism Association, in a joint statement, expressed their satisfaction with the changes made to the Covid-19 Guarantee Scheme
Earlier this month, the Gozo Business Chamber and the Gozo Tourism Association (GTA) [1] highlighted that the Covid-19 Guarantee Scheme launched by the Malta Development Bank “was not enough to inject the required liquidity that businesses needed in order to survive.”
They argued that, “a 1% point reduction as was being earmarked in the same scheme was both unattractive and did not go far enough to provide the access to finance that businesses at this crucial point in time required.”
“This public health crisis which is affecting all sectors of the economy required bold measures that at that point were not being implemented,” they said.
Today, the GBC and the GTA said that that Government has entered into the prerogative of guaranteeing 90% of the loans to businesses, and of covering 2.5% of the interest that is being charged by commercial banks for the first two years.
“These are positive steps which will ensure that Malta’s economy and its businesses will continue to weather the storm, and that they will be prepared to continue competing once this crisis is over,” the said.
Both the GBC and the GTA said that they noted with satisfaction that their suggestions were “taken on board providing better access to finance, and completing the fiscal and financial package that is being offered by the Government.”
The matter is now in the hand of the local Banks and the GBC and GTA said that they are “convinced that the local Banks will shoulder with responsibility their duty to make funds accessible to local businesses at very low rates, given that the loans are Government guaranteed.”
The GBC and GTA concluded by suggesting that arrangement fees are also waived, adding that “unprecedented events need an unprecedented response and Banks are invited to be participative in this collective effort.”