Market Gaps on Access to Finance - Bank of Valletta

Malta Business Bureau – <strong>Market</strong> gaps in access to finance
April 2013
2.4.3 Other assistance schemes in Malta
Aside from the various schemes offered by ME, additional assistance is also available to SMEs in
Malta through:
Invex (Office of the Prime Minister) – this scheme targets cultural and creative enterprises
and organisations, providing long-term strategic support to improve their products, services
and internal organisational structures. It also supports organisations seeking to enhance
their professional capacities and portfolio by way of organisational growth, research,
business and audience development, technological investment and international
partnerships. Selected organisations may benefit from a three year funding period, based
on a 3-year business plan.
MicroCredit scheme - launched in 2011 with a fund financed under the Joint European
Resources for Micro to Medium Enterprises (JEREMIE) from EU Structural Funds, this is the
first Loss Portfolio Guarantee vehicle set up in Malta to grant SMEs and self-employed loans
of up to €500,000 at advantageous interest rates and considerably lower collateral
requirements. 20% of the fund was earmarked for firms with fewer than 10 employees and a
turnover of not less than €2 million. The financial institution awarded the tender, namely
Bank of Valletta plc (BOV), is to provide €51 million in new loans over a period of 36 months
to small businesses, through a guarantee agreement for €8.8 million with the European
Investment Fund (EIF). This scheme was referred to as a “best practice” example in the EC’s
SBA Fact Sheet for Malta covering the period 2012 37 . The MicroCredit/ JEREMIE scheme is
explained in greater detail in Section Error! Reference source not found..
The Employment & Training Corporation (ETC) provides assistance through a number of schemes
and initiatives to incentivise businesses to invest in their workforce. These include:
Enhancing Employability through Training Programme – this programme, which is part
financed by the European Social Fund (ESF), aims to reintegrate registered unemployed or
inactive individuals into the labour market, as well as provide further training in the field of
basic skills, office related subjects, IT, technical courses and care working courses amongst
others.
Traineeships - Traineeship is a dual system of occupational skill development programme
comprising both on-the-job training and off-the-job training. It is targeted at new labour
market entrants, unemployed clients or employees involved in restructuring exercises. This
flexible training solution to address skill shortages is offered to employers willing to recruit
as part of a traineeship. The content and occupational standards are set after consultation
with the employer and lead to certification. During the traineeship programme, trainees are
paid the equivalent of 80% of the minimum wage.
Training Subsidy Scheme – this scheme is intended to encourage constant training and
development amongst the self-employed, employees of micro enterprises which employ 10
persons or less, employees of NGO's and Local Councils, and jobseekers who are registering
for work. It provides financial assistance for off-the-job training expenses. The financial
assistance is a grant equivalent to 75% of the training costs, up to a maximum amount of
€1,000 per individual.
Training Aid Framework (TAF) - The TAF is intended to promote access to training of
persons actively participating in the Maltese labour market. This programme also aims to
increase and/or improve the skills of persons employed. The TAF provides financial
assistance to employers in the form of part-refund of training costs incurred by private
owned companies when they train their employees 38 .
37 European Commission (2012), SBA Fact Sheet – Malta 2012
38 This scheme is currently on hold
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