BusinessToday Previous Editions

24.09.2020 4 NEWS THE Gozo Business Chamber (GBC) has published its budgetary proposals, based on an attentive analysis of the Gozitan economy which is presently over-reliant on certain sectors such as tourism, con- struction, and real estate. e diversification of the Gozitan econ- omy is of utmost priority at this stage also given Government's investment in certain areas such as digital infrastructure, for ex- ample the digital innovation hub. e GBC's budgetary proposals focus on four main areas: transport and con- nectivity, public infrastructure, sustaina- bility, and initiatives targeted towards the establishment of a digital sector in Gozo. is is also in line with Government's vision for Gozo as outlined in its 2021 pre-budget document, of "securing an innovative, rejuvenated and connected island that delivers social and economic prosperity for all, while at the same time conserving its unique, rural and cultural characteristics". e Chamber said that the situation cannot continue as at present. e coun- try's recovery also passes through a re- modelling and rethinking of the Gozitan economy to be more forward looking. Many of the proposals put forward by the Chamber in its Post COVID-19 Stra- tegic and Policy document (May 2020), are still valid. Nonetheless the Chamber has decided to focus on those proposals which need to be tackled with urgency in order to ensure Gozo's economic recovery is in line with that of the whole nation. "It is essential for the Government to adopt a regional focused approach," the Chamber said. "Gozo merits special at- tention because it posseses specific at- tributes which can assist not only its own recovery but that of the whole nation." e measures proposed in no way di- minish the economic recovery initia- tives implemented throughout the past months, and the Chamber urged the Government to continue to monitor the situation to assess their impact and con- tinuation where necessary. e budgetary proposals being put for- ward by the GBC are the following: Transport and Connectivity • Continue with important projects for Gozo including enhancing further maritime and air links be- tween Gozo and Malta. • Continuation of the permanent link project between Gozo and Malta. Public Infrastructure • e building of a new hospital for Gozo. • e building of an underground multi-storey parking in Victoria, that would not impinge on the city's historical and authentic land- scape. • e building of a new breakwater for Marsalforn harbour Sustainability • Replace the present leased ferry with a hybrid ferry. is should also be considered for the other Gozo Channel vehicles as a long term approach when coming to re- place the existing fleet. • Electric vehicles of Maltese resi- dents crossing over to Gozo are to pay a reduced fare. On the other hand Gozitan residents with elec- tric vehicles would cross for free on Gozo channel ferries. • Refund on electric vehicles for Gozo residents to be raised to € 9,000 instead of the present max- imum of € 7,000. Initiatives targeted towards the establishment of the digital sector in Gozo • Provide a tax holiday for compa- nies in the digital sector to estab- lish themselves here in Gozo. • Grant a subsidy on rent for com- panies in the digital sector which establish themselves in the Digital Innovation Hub. • Create an eco-system of incentives specific for Gozo, for business en- terprises within the wide spectrum of the digital technology sector alongside a holistic strategy for Gozo in this sector. Gozo Chamber publishes budget proposals BANK of Valletta is the first bank to sign up to the Malta Development Bank's Small Loans Guarantee Scheme (SLGS), with a number of other commercial banks expected to follow suit. is scheme provides an important ad- ditional impetus to SMEs as they seek to pull through the challenges of the present times and push forward the country's re- covery in the months ahead. Principally, the SLGS is a facility de- signed to support smaller businesses to access credit facilities up to €250,000 for working capital purposes. e scheme has been purposely designed with the un- derstanding that one of the main barriers to finance, especially for start-ups and SMEs, relates to difficulties associated with high collateral requirements. e scheme addresses this constraint by allowing smaller businesses to source loans under the MDB COVID-19 Guar- antee Scheme (CGS) without the need to provide high levels of soft collateral (per- sonal guarantees). rough the SLGS, the MDB provides additional protection to intermediary banks and, in turn, banks reduce soft col- lateral requirements to a maximum of 20% of the loan value. Since banks have valid reasons for ask- ing for additional collateral in certain cases, the SLGS is also mindful of the in- termediary banks' interest, offering them protection on their credit risks. Additionally, in order to ensure the maximum take-up of this scheme, guar- anteeing that as many businesses share the benefits being made available, the MDB has announced that the SLGS will apply retroactively: if a business has al- ready concluded loans with participating intermediary commercial banks under the MDB COVID-19 Guarantee Scheme, it can now apply to renegotiate the previ- ously submitted security under the terms of the SLGS. Since the launch of the wider Covid-19 Guarantee Scheme, in April, the MDB has now supported over 400 businesses, with loan facilities reaching more than €285 million, thus helping in safeguarding the jobs of more than 15,000 persons. Commenting on these latest develop- ments, Prof Josef Bonnici, MDB Chair- man, said: "We are very pleased with the take-up of Covid-19 related assistance so far; through the additional incentives being provided to the smallest business- es and the self-employed we are making sure that the Bank can truly reach out and support every entrepreneur, whatever the size of the business, to play a role in Mal- ta's economic regeneration." Prof Bonnici recalled that despite the significant take-up, the MDB's fund avail- able for the Guarantee Scheme is far from exhausted: "We must strive to continue reaching out and supporting local busi- nesses. To this end, we encourage local entrepreneurs to approach their preferred commercial banks, to seek help and learn more about these attractive schemes." BOV first bank to sign up to MDB's Small Loans Guarantee Scheme

• Cover