Maltese economy must harness sustainability and creativity – Malta Development Bank Chair

Malta Development Bank (MDB) Chairman Leo Brincat has stated that an agreement with the European Investment Fund (EIF) will drive sustainability and creativity towards becoming significant contributors to Malta’s economic growth.

His comments came after EIF, part of the EIB Group, joined forces with the MDB to continue driving the green transition in Malta and support cultural and creative businesses.

The businesses will be provided with two guarantees totalling €20 million.

The operations aim to foster environmental sustainability and cultural activities, while also boosting Malta’s economic development and job creation. It is expected that this new agreement will contribute to mobilise investments in the real economy of around €44 million.

Mr Brincat said: “We want to help make sustainability and creativity significant contributors to Maltese economic growth and job creation.”

He affirmed that that the MDB is proud to have been entrusted with a significant guarantee to allow it to “develop instruments to support both the green transition and the creative and cultural sector in the years ahead.”

The EIF support, backed by InvestEU, includes a €15 million guarantee to empower small and medium-sized enterprises (SMEs) and small mid-caps across Malta to undertake green projects, thereby contributing to a low-carbon economy and mitigating the adverse effects of climate change.

Additionally, a €5 million EIF guarantee line will support SMEs in the cultural and creative sectors, aiming to bolster an ecosystem that often faces difficulty accessing finance.

This agreement builds on the €30 million operation between the European Investment Bank (EIB) and MDB at the end of 2023, which aimed to back a wide range of green initiatives such as electric vehicle charging infrastructure, solar photovoltaic installations, energy efficiency in both public and private buildings, as well as waste recycling projects.

EIB Vice President Kyriacos Kakouris remarked: “We are glad to further strengthen our partnership with the MDB to boost green investments and join efforts also in support of a thriving, agile and profitable creative and cultural space.”

“With the support of InvestEU, both green and cultural investments in Malta will contribute to economic growth locally and throughout Europe,” he added.

EIF Chief Executive Marjut Falkstedt said that through this agreement, under the InvestEU programme, the EIF and the MDB will be supporting SMEs in Malta in their journey towards sustainability.

“By providing access to finance at favourable conditions and expertise, we aim to empower businesses to embrace green practices, thereby fostering environmental stewardship while driving job creation,” she continued.