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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure MT-2022-25/3154 – measures in Malta

Liquidity support guarantee scheme for organisations impacted by the war in the Ukraine

Skema ta' garanzija ta' likwidità għal organizzazzjonijiet milquta mill-gwerra fl-Ukrajna

Country Malta , applies nationwide
Time period Temporary, 16 June 2022 – 31 December 2023
Context War in Ukraine
Type Other initiatives or policies
Category Supporting businesses to stay afloat
– Access to finance
Author Luke Anthony Fiorini (University of Malta) and Eurofound
Measure added 04 May 2023 (updated 07 November 2023)

Background information

The war in Ukraine impacted several sectors in Malta. In order to limit the impact on businesses and consumers, the government introduced a number of support measures. These measures include support for organisations that import grain and access to financing for organisations impacted by the war.

Among other measures aimed at tackling the rise of prices of energy and fuel, the government introduced the Liquidity Support Guarantee Scheme - Measure A (LSGS-A) through the Malta Development Bank. This measure provides working capital loans to organisations affected by the war in the Ukraine.

Content of measure

The measure provides guaranteed working capital loans via intermediate accredited commercial banks at subsidised interest rates. The measure provides a guarantee covering 90% of each facility. The measure targets organisations with urgent liquidity needs for working capital purposes for reasons that include increased raw material prices, disruption to supply chains, higher costs due to electricity and gas, and other increased working capital costs linked to the war in Ukraine.

SMEs and large enterprises established and operating in Malta are eligible for this measure. Organisations that are illegal, related casinos or gambling, or manufacture items that are being phased out (e.g. toxic chemicals) are excluded from this measure.

The loan amount will not exceed €10 million per SME or €25 million per large enterprise. Furthermore, the loan amount cannot exceed 15% of the organisation's average total annual turnover in the last three accounting periods and 50% of the organisation's energy costs during a period of 12 months.

The term of the loan is valid for up to six years. The interest rate subsidy is up to 2.5% of the outstanding amount. Guidelines for the measure state that credit institutions must provide a significant reduction of the average interest rate to organisations when compared to similar facilities provided before the introduction of this scheme.

Use of measure

The Malta Development Bank total has made available a total loan portfolio of up to €100 million for this measure.

A Central Bank of Malta report (Q1/2023) indicated that as of September 2022, no facilities had been approved under this scheme.

The September 2023 Economic Update by the Malta Central Bank makes reference to the current measure as well as one designed to provide financing support to importers of fuel and oils that were affected by the war in Ukraine. It notes that "By the end of August 2023, a total of €24.5 million was approved under one of these schemes, unchanged from a month earlier. The facility was withdrawn in full, and the outstanding value of loans stood at €24.5 million by end-August." It is not stated, however, which of the two measures was approved and disbursed.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Regional or local level


The measure was designed and is managed by the Malta Development Bank. While evidence of specific social partner involvement could not be found, two independent directors appointed by the Minister on the recommendation of the Malta Council for Economic and Social Development (MCESD) are part of the board of the Malta Development Bank.

The MCESD is Malta's main body of tripartite social dialogue and includes representatives of Malta's largest employer associations and trade unions.

Views and reactions

Specific views and reactions to this measure by social partners were not identified.



Eurofound (2023), Liquidity support guarantee scheme for organisations impacted by the war in the Ukraine , measure MT-2022-25/3154 (measures in Malta), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.