The EIF has signed a guarantee agreement with Bank of Valletta, allowing the bank to provide over EUR 50 million of new loans to Maltese Small and Medium-sized Enterprises (SMEs), including micro-businesses. The agreement brings a new instrument, the First Loss Portfolio Guarantee (“FLPG”) to the Maltese market.

This instrument offers a new opportunity to a broad range of SMEs across Malta (including Gozo) looking to invest or expand their business. Bank of Valletta will offer improved loan conditions to businesses by reducing collateral requirements and reducing interest rates. The product will be available for SMEs on April 6, 2011 and will facilitate SMEs access to finance.

The guarantee is implemented under the JEREMIE (Joint European Resources for Micro to Medium Enterprises) initiative, financed from EU Structural Funds.

Commenting on the signature, Jean-Marie Magnette Deputy Chief Executive at the EIF, said: "The EIF is pleased to be signing the first JEREMIE agreement to benefit Maltese businesses less than a year after signature of the funding agreement. This new financial product will allow an increase in lending volumes to local businesses at better terms including microloans and start-up finance. Thus, JEREMIE in Malta does not only benefit SMEs but also the Maltese economy as a whole.”

Tonio Depasquale, Chief Executive Officer, Bank of Valletta said: "Bank of Valletta is very proud to be appointed as the Maltese financial intermediary for the management of the JEREMIE initiative. We will be using this programme to further promote growth, innovation and renovation amongst SME's with particular attention to Micro SME's and start-ups for the benefit of the Maltese economy at large".

Minister of Finance, the Economy and Investment Tonio Fenech welcomed the launch of this scheme, which will provide better access to finance to Maltese small business owners: “The Maltese economy is recovering well and in 2010 experienced one of the highest growth rates in the EU, together with a significant drop in unemployment. However, we need to sustain this momentum and small businesses play an important role in achieving this objective. Through this scheme, we are facilitating access to new investment which supports business growth, innovation, and increase in renewable technology while so creating further job opportunities in a wide range of sectors of the economy.”

About EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total net commitments to private equity funds amounted to over EUR 4.9bn at end 2010. With investments in over 300 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF commitment in guarantees totaled over EUR 14.4bn in close to 160 operations at end 2010, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Bank of Valletta

Bank of Valletta is the leading financial services provider in Malta, delivering the full range of financial services including retail and investment banking, private banking, fund management, bancassurance and stockbroking. Domestic operations include a nation-wide network of branches and business centres, while all retail banking is also delivered via internet, phone and mobile channels. BOV also issues bank cards under the Visa, MasterCard and American Express brand names.

BOV offers the most comprehensive suite of products aimed at the business sector, financing the pillars of Malta’s economy. It also hosts a dedicated support office to provide tailored banking services to SMEs and sole traders.

About JEREMIE

JEREMIE (Joint European Resources for Micro to Medium Enterprises) is a joint initiative launched by the European Commission (DG Regional Policy) and the European Investment Bank group to improve access to finance for SMEs in the EU within the Structural Funds framework for the period 2007-2013. JEREMIE enables the EU Member States and Regions to put money from the structural funds and also national resources into holding funds that can finance SMEs in a flexible and innovative way. The initiative aims at developing and fostering the role of entrepreneurship within the EU in order to help structural funds to deliver greater benefits to the market.

To date, the EIF has signed 8 National and 3 Regional Holding Fund agreements.

In Malta, the JEREMIE Holding Fund is financed from the EU Structural Funds under 2007-2013 Operational Programme – Investing in Competitiveness for a Better Quality of Life” and managed by the EIF.

Contact:

EIF : David Yormesor, tel. (+352) 426 688 346, e-mail: d.yormesor@eif.org
Bank of Valletta: Edward Muscat Azzopardi, Tel: (+356) 2275 3054, e-mail: edward.muscatazzopardi@bov.com