Issue link: https://maltatoday.uberflip.com/i/1467489
5 INTERVIEW 12.5.2022 SINCE the inception of the Malta De- velopment Bank (MDB), more than 700 firms in Malta and Gozo, across the eco- nomic spectrum, have secured over €600 million in guarantees and loans backed by the MDB, a significant figure reflect- ing almost 14% of all outstanding busi- ness loans in Malta. ese figures were disclosed in MDB's 2021 Annual Report, tabled in Parliament on Tuesday. e bank said that as the pandemic continued to restrict economic activity and liquidity in 2021, it extended its Cov- id-19 related schemes thus ensuring that firms continued to have access to ample bank credit to finance their working cap- ital needs. e report also highlights the bank's countercyclical role through the evident inverse relationship between the intensi- ty of MDB's assistance and GDP growth during the past seven quarters of availa- ble data. e Covid-19 Guarantee Scheme (CGS) remained the Bank's most im- pactful scheme, with more than 600 firms employing around 40,000 per- sons benefitting during one of the most challenging times in recent economic history. e CGS provided a lifeline to businesses requiring finance to cov- er working capital costs such as wages, rental costs, and utility bills. In parallel, the MDB also operated an Interest Rate Subsidy Scheme, which provided grants on interest payable on CGS loans. Alongside the extensive crisis response measures, the bank's core programmes continued to deliver significant con- tributions. e SME Invest remained MDB's main guarantee scheme for new investments by small businesses. As at end 2021 the allocated portfolio of €50 million has been almost entirely ab- sorbed. e Further Studies Made Affordable Scheme, through which the Bank contin- ued to support the upskilling of Malta's youths and strengthening the country's human capital, was also highly success- ful, so much so that it had its budget topped up for the year in review. Subsequently, earlier this year, a new scheme, the FSMA+ was launched, also through EU funding, making available another €15 million in soft loans for stu- dents. e Bank also continued to support in- frastructure projects, whose borrowing requirement tends to exceed the amount that any single commercial bank is will- ing to accommodate. Introducing the report, MDB Chair- man Prof. Josef Bonnici explained that as the economic situation evolved in the past months, the bank has adjusted its strategy to reflect the changing needs of the economy and the business communi- ty, adding that it has now set the wheels in motion to develop programmes that reflect the evolving circumstances of the post-pandemic scenario. Bonnici said that the bank was keep- ing an eye on the unfolding situation in Ukraine and its effects on the Maltese economy. "In this regard, the bank is actively considering the introduction of a number of measures to support strate- gic sectors in securing the supply of key commodities and to facilitate the flow of liquidity to local businesses", the chair- man said. e Bank has also invested significant- ly in improving its internal organisation, including its governance structures, to ensure that it is better positioned to ac- cess EU funded financial instruments made available through the support of the European Investment Fund and go- ing forward under InvestEU. During the year the MDB signed two guarantee agreements amounting to close to €80 million under the Pan-Euro- pean Guarantee Fund (EGF) to support the two financial instruments soon to be launched by the Bank. Such guarantees shall be leveraged through intermedi- ating commercial banks enabling an in- jection in excess of €150 million in the economy. Chief Executive Officer Rene Saliba ex- plained that in spite of the international economic uncertainty and geopolitical tensions, indicators point towards a sus- tained recovery, for the European and Maltese economy. "In such a context, the MDB has been for the past months carrying out exten- sive research and consulting with eco- nomic stakeholders, in order to design the instruments required by the local economy to support its regeneration and meeting the strict obligations associated with the fight against climate change and the extensive investment gap in digitali- sation. On all fronts, the Bank will retain its strong social dimension which has characterised its short history", he said. More than 700 firms secure financial backing through Malta Development Bank FLOW 22 will bring together leading Malta-based businesses to share their experiences of digital transformation and the impact this has had on their op- erations and profitability. Taking place on 16 June 2022, the event will show- case digital transformation case studies across multiple sectors and different as- pects of business. Covering areas such as accounting and payments, human re- sources and payroll, retail, manufactur- ing, sales and marketing, and business intelligence, FLOW 22 is designed to provide clear information to any organ- isation planning to introduce digital or automated processes into its workflow. Organised by 4Sight Group, a lead- ing digital transformation consultan- cy business, in collaboration with e Malta Chamber of SMEs, FLOW 22 will offer attendees the opportunity to join different sessions throughout the day which are focussed on topics of specific interest to them. e event will also in- clude opportunities for networking. Describing the reasons behind the creation of FLOW 22, 4Sight CEO Maurizio Mamo, said, "Every business understands the benefits that digital transformation can bring. e ability to automate processes and to collect and use valuable data, improves efficiency and profitability by allowing employees to focus on higher value tasks. It is also true that undertaking a digital transfor- mation can be a daunting task, which is not without risk. FLOW 22 will give business owners the opportunity to hear from their peers who have already undergone, or are undergoing a digital transformation, to learn how they ap- proached this transformation and what outcomes were achieved." More information on FLOW 22, in- cluding details on the registration pro- cess, is available from https://www. flow.mt/ Malta Development Bank has invested significantly in improving its internal organisation FLOW 22 to highlight opportunities of digital transformation FLOW 22 will bring together leading Malta-based businesses to share their experiences of digital transformation and the impact this has had on their operations and profitability