3rd April 2020
The European Commission has approved the Maltese Government’s proposals to support the local economy in the context of the coronavirus outbreak. The initiative, which has an estimated budget of €350 million, was approved by the Commission under the State Aid Temporary Framework, thus allowing the Maltese Government to support the economy in the context of the COVID-19 outbreak; this consists of a guarantee scheme for working capital loans granted by commercial banks to support companies affected by the coronavirus outbreak.
The Commission approved same on the grounds that it found that the Maltese measure is in line with the conditions set out in the Temporary Framework, specifically: (i) the underlying loan amount per company is linked to cover its liquidity needs for the foreseeable future, (ii) the guarantees will only be provided until the end of this year, (iii) the guarantees are limited to a maximum of six years, and (iv) guarantee fee premiums do not exceed the levels foreseen by the Temporary Framework.
How can we help?
We are monitoring developments in relation to all local initiatives aimed at supporting businesses and employees on an ongoing basis and will provide updates as more information becomes available. Meanwhile, should you require any assistance relative to how your business may benefit from the previously announced Teleworking Scheme (extended deadline for applications – Friday 8 May 2020), Tax Deferral Scheme (deadline for application – 15 April 2020), the Covid-19 Wage Supplement measure and Malta’s Financial Aid package generally, please do not hesitate to reach out to us personally.
©Fenech & Fenech Advocates 2020
Disclaimer │ The information provided on this Update does not, and is not intended to, constitute legal advice. All information, content, and materials available are for general informational purposes only. This Update may not constitute the most up-to-date legal or other information and you are advised to seek updated advice.