EU approves €30m Maltese scheme to support importation, manufacturing, wholesale of grains

The European Commission has approved a €30 million Maltese scheme to support companies active in the importation, manufacturing and wholesale of grains and other similar products in the context of Russia’s invasion of Ukraine.

The scheme, which goes under the name “MDB Subsidised Loan Scheme”, was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, recognising that the EU economy is experiencing a serious disturbance.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €30 million scheme will enable Malta to mitigate the economic impact of Putin’s war in Ukraine and to support companies active in the importation of grains and other similar products affected by the current geopolitical crisis. We continue to stand with Ukraine and its people. At the same time, we continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the Single Market.”

The Maltese measure

Malta notified to the Commission under the Temporary Crisis Framework of a €30 million scheme to support companies of all sizes active in the importation, manufacturing and wholesale of grains and other similar products in the context of Russia’s invasion of Ukraine.

The MDB, in a later statement, announced that it has launched the MDB Subsidised Loans Scheme after the Commission gave its approval. In order to ensure food security in the wake of the war in Ukraine, the MDB is committed to assist importers and wholesalers to stock reserves of wheat and animal feeds for a longer period than normal, the MDB said.

“Such abnormal stock piling at the prevailing higher prices required substantial liquidity at short notice. The MDB was appointed by the Government to take immediate remedial action by providing urgent liquidity support in the form of direct subsidised loans to the major grain importers. The MDB Subsidised Loan Scheme offers a portfolio of up to €30 million loans to grain importers for a term of two years. Loans under this measure also benefit from an interest rate subsidy of up to 2%. The Scheme is available until 31 December 2022,” the MDB said.

This scheme is the first of a package of support measures which the MDB will be rolling out over the coming weeks, the MDB said.