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Representation in Malta
News article29 April 2022Representation in Malta1 min read

State aid: Commission approves €80 million Maltese scheme to support small and medium-sized enterprises in the context of the coronavirus pandemic

state aid


The European Commission has approved, under EU State aid rules, a €80 million Guaranteed Co-Lending Scheme (‘GCLS’) for small and medium-sized enterprises (‘SMEs’) in the context of the coronavirus pandemic. The scheme is aimed at providing financial assistance to SMEs that are looking to invest and diversify their business following the coronavirus outbreak and its impact on the wider economy. The GCLS is a risk-sharing facility involving co-lending (i) by the Malta Development Bank (‘MDB’) for half of the total loan amount; (ii) and by other accredited  commercial banks for the other half. In addition, MDB will provide a guarantee up to a maximum of 60% of the loan amount lent by the commercial banks. Therefore, the GCLS consists of two different measures: (i) aid in the form of loans directly granted by MDB; and (ii) aid in the form of guarantees granted by MDB to the commercial banks on the part of the loan lent by them. The Commission assessed the measure under EU State aid rules, and in particular Article 107(3)(b) TFEU, which enables the Commission to approve State aid measures implemented by Member States to remedy a serious disturbance in their economy. The Commission found that the Maltese scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and in particular with the State aid Temporary Framework. In particular, (i) the measure will be in place until 30 June 2022; (ii) the overall nominal value of the guarantees will not exceed €2.3 million per beneficiary; and (iii) there will be safeguards in place to ensure that the advantages of the measure are passed on to the largest extent possible to the final beneficiaries via the financial intermediaries. On this basis, the Commission approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.101993 in the State aid register on the Commission's competition website.


Publication date
29 April 2022
Representation in Malta