Issue link: https://maltatoday.uberflip.com/i/1498480
2 NEWS 4.5.2023 THE Malta Development Bank's vari- ous financing schemes have continued to provide an effective mechanism to mobilise private investment, thereby facilitating access to finance, support- ing local businesses in their quest for growth and innovation. The Bank's Annual Report for 2022, launched in the presence of Finance Minister Clyde Caruana, shares details of how throughout its first five years of operations, the Bank has assisted more than 700 businesses which em- ploy some 40,000 persons, and more than 430 students, by facilitating over €580 million in favourable financing. Prof Josef Bonnici, MDB chairman, noted with satisfaction that despite the difficult operating environment that characterised the economy and financial sector in recent years, the Bank has continued to strengthen its financial performance, and for the first time generated an operat- ing profit while the risk profile in the Bank's portfolio remained low and stable. "This is the result of prudent oper- ations based on appropriate financial practices in line with sound banking principles", Bonnici explained. The MDB chairman also recalled how during the past year, the Bank swiftly responded to the economic ramifications of the ongoing war in Ukraine through three facilities, with- out derailing efforts in supporting new investment. Referring to the two new flagship schemes launched late last year, the SME Guarantee Scheme and the Guaranteed Co-lending Scheme, Bon- nici noted how both schemes are tai- lored to the specific circumstances of local businesses, whilst prioritising those investment projects that con- tribute to a greener and more digitally oriented economy, in line with the key objectives of the Government and the European Union. MDB Chief Executive Officer Paul V Azzopardi highlighted the econom- ic impact of the MDB's operations, explaining that the Bank currently contributes to around 13% of all the banking system's outstanding loans to Maltese businesses. He shared details of how in order to widen its portfolio, the MDB has sought the support of the EIF and also embarked on the ambitious process of becoming a direct implementing part- ner of InvestEU. The MDB is committed to strength- en its role as Malta's gateway for EU financial instruments as this will ena- ble more risk taking and an enhanced benefit pass-through to businesses. "To achieve this objective, while also strengthening the role of the Bank in Malta's economy, we continue to make a significant investment to ensure a high level of protection to EU funds, including on matters related to inter- nal control systems, the accounting system, and other aspects including anti-money laundering, tax avoidance, data protection, financial and credit risk management and sound govern- ance structures", Azzopardi said. Caruana said the MDB has proven to be a key player in Malta's economic stability and growth, even though the country was hampered by the pan- demic and the war in Ukraine. "It is nothing short of remarkable that the MDB managed to achieve self-sustainability and become an in- tegral financial institution in just five years," he said. "I am also pleased that the MDB have their targets aligned with ours, with human capital ranking high on their agenda. The investment in human capital and in sustainability are cru- cial aspects that will allow our coun- try, and its institutions, to grow. As the Government works on the future of energy and sustainability, we will be making the utmost to provide sub- stantial investment opportunities in these fields and in Malta's exclusive economic zone. I look forward for these opportunities to come to frui- tion which will allow the MDB to play a key role in what we are expecting to be the largest investment opportunity for the Island." MDB plays crucial role in facilitating access to finance and unlocking private investment Euro area unemployment at 6.5% MDB chairman Prof. Josef Bonnici IN March 2023, the euro area seasonally-adjusted unemploy- ment rate was 6.5%, down from 6.6% in February 2023 and from 6.8% in March 2022. e EU unemployment rate was 6.0% in March 2023, stable compared with February 2023 and down from 6.2% in March 2022. ese figures are published by Eu- rostat, the statistical office of the European Union. Eurostat estimates that 12.960 million persons in the EU, of whom 11.010 million in the euro area, were unemployed in March 2023. Compared with February 2023, unemployment decreased by 155 thousand in the EU and by 121 thousand in the euro area. Compared with March 2022, unemployment decreased by 353 thousand in the EU and by 365 thousand in the euro area. Youth unemployment In March 2023, 2.763 million young persons (under 25) were unemployed in the EU, of whom 2.264 million were in the euro area. In March 2023, the youth unemployment rate was 14.3% both in the EU and in the euro area, down from respectively 14.5% and 14.4% in the previous month. Compared with February 2023, youth unemployment de- creased by 33 thousand in the EU and by 14 thousand in the euro area. Compared with March 2022, youth unemployment in- creased by 105 thousand in the EU and by 91 thousand in the euro area. Unemployment by sex In March 2023, the unemploy- ment rate for women was 6.3% in the EU, down from 6.4% in February 2023. e unemployment rate for men was 5.6% in March 2023, down from 5.7% in the previous month. In the euro area, the unem- ployment rate for women was 7.0%, down from 7.1% in Febru- ary 2023. e unemployment rate for men was 6.1%, stable compared with the previous month. Estimates are based on the globally used International La- bour Organisation (ILO) stand- ard definition of unemployment, which counts as unemployed people without a job who have been actively seeking work in the last four weeks and are available to start work within the next two weeks. To capture in full the labour market situation, the data on un- employment have been comple- mented by additional indicators, e.g. underemployed part-time workers, persons seeking work but not immediately available and persons available to work but not seeking, released togeth- er with LFS data for the fourth quarter of 2022. LFS data for the first quarter of 2023 will be re- leased on 16 June 2023. EMBARGO: Wednesday 3 May 2023 - 11:00 CET 53/2023 – 3 May 2023 March 2023 Euro area unemployment at 6.5% EU at 6.0% In March 2023, the euro area seasonally-adjusted unemployment rate was 6.5%, down from 6.6% in February 2023 and from 6.8% in March 2022. The EU unemployment rate was 6.0% in March 2023, stable compared with February 2023 and down from 6.2% in March 2022. These figures are published by Eurostat, the statistical office of the European Union. Eurostat estimates that 12.960 million persons in the EU, of whom 11.010 million in the euro area, were unemployed in March 2023. Compared with February 2023, unemployment decreased by 155 thousand in the EU and by 121 thousand in the euro area. Compared with March 2022, unemployment decreased by 353 thousand in the EU and by 365 thousand in the euro area.