EIF signs JEREMIE top-up agreement with the Maltese Government, injecting another EUR2m aimed at assisting SMEs

The EIF, the Government of Malta and the Bank of Valetta, signed two agreements allowing Maltese SMEs to benefit from a total of EUR 11 million in preferential loans via the JEREMIE Holding Fund.

The first agreement was signed between the Maltese Government, represented by Dr. Ian Borg, Parliamentary Secretary for EU Funds and the European Investment Fund, represented by the Fund’s Company Secretary, Maria Leander. A second agreement was signed between the EIF and one of the main local banks Bank of Valletta represented by Chairman Mr John Cassar White.

This investment is calculated to have given rise to an investment in the economy of EUR 83.5 million, from the initial investment of EUR 10 million from ERDF and national funds. Based on experience so far, today’ agreement is expected to give rise to assistance being provided to some 100 SMEs.

Commenting on the signature, Company Secretary at the EIF, Maria Leander said:  ”We are pleased to be signing this extension agreement with Bank of Valletta for the benefit of businesses here in Malta under the JEREMIE agreement. Having already supported a substantial number of businesses to-date, we expect that following this extension agreement, even more businesses in Malta could benefit from EU finance.”

In his address at the Auberge D’Aragon, Deputy Prime Minister Grech stated that “The success of the first tranche of JEREMIE allocation has in fact been so evident that a decision was taken to top up this fund by a further EUR 2 million. Once the decision was taken that additional money would be topped up to the current allocation, the European Investment Fund (EIF) were asked to kick start the process to make this possible. It is here that we thank them of the rapidity of how this was done.” He explained that EIF launched a call for financial intermediaries to show an interest in managing the additional pot of EUR 2million, following the necessary dues diligence by EIF, Bank of Valletta was selected to manage this additional allocation.

The Deputy Prime Minister added that “The Success story behind JEREMIE Malta, is to have the right partner. In this regards BoV have shown committed to deliver and have made this experiment a success.”

As at end of June 2013, 602 Loan Facilities were granted to 533 different Maltese SMEs for the value of EUR 48.6 million (of the EUR 51.04 million portfolio to be created by the EUR 10 million pledged so far).

In concluding his remarks Deputy Prime Minister Grech reiterated the need to start planning now for the years ahead “This Government is committed to continue to support the Small and Medium Size Enterprises that are the backbone of the economy. Looking forward to the 2014-2020 programming, it is evident that Financial Engineering has an important role to play. Indeed discussions are ongoing on how to create the best possible financial instrument to cater for the Maltese reality.”

The utilization of more financial engineering instruments in the coming years was also mentioned by the Parliamentary Secretary for the EU Presidency 2017 and EU Funds Dr. Ian Borg who said that: “The Maltese Authorities have already contracted the European investment fund to carry out an ex-ante assessment in preparation of Financial Engineering (FE) instruments to be included in the programming period 2014-2020.”

John Cassar White, Chairman at Bank of Valletta said: "Bank of Valletta is honoured to have been reappointed as the sole Maltese financial intermediary offering the JEREMIE initiative. The experience that we have gained through this programme, will help us to further facilitate the access to finance for our SMEs through the utilisation of EU supported financial engineering instruments for the benefit of the Maltese business community.”

About EIF

The European Investment Fund's (EIF) central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance.  EIF designs and develops venture and growth capital, guarantees and microfinance 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. EIF’s total net commitments to private equity funds amounted to over EUR 6.9bn at end 2012. With investments in over 435 funds, 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. EIF’s guarantees loan portfolio totalled over EUR 4.7bn in close to 255 operations at end 2012, 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, investment 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)

JEREMIE is a joint initiative launched by the European Commission (Directorate General 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 new initiative aims at developing and fostering the role of entrepreneurship within the EU.

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.

To date, at EU level, EIF manages a total of 14 JEREMIE Holding Funds, of which 7 at national level and 7 at regional level.

Press contacts : 

• EIF Communications Unit: David Yormesor, tel. +352 248581346, e-mail d.yormesor@eif.org
• Bank of Valletta: Joyce Tabone, Tel: +356 2275 3037, e-mail joyce.tabone@bov.com