The Government announced that it has reached agreement with all commercial banks to limit the interest rate on working capital loans to 3.5%.
The banks involved are Bank of Valletta, HSBC, APS Bank, MeDirect, BNF, Lombard Bank, Izola Bank and FCM Bank
Moreover, the Government will cover the first 2.5% of the interest rate for the first 24 months – in affect, providing a subsidy of 2.5% on interest rate on working capital.
The scheme is limited to working capital loans which are necessary for businesses to continue with their day-to-day operations. The following are eligible for the subsidised interest rate:
- Payment of salaries
- Payment of leases and rental costs
- Payment of water and electricity bills
- Payment of invoices
- Aquisition of material and stock
- Payment of expenses related to cancellation or postponement of contracts due to COVID-19
- Payment of maintenance costs.