GRTU welcomes the inclusion of Banif Bank to the SME Initiative
GRTU has welcomed the fact that another bank is now offering lending specifically targeting SMEs under the SME Initiative. Following the success of Jeremie, that was solely administered by BOV at the time, GRTU now looks forward to witnessing an EU financial instrument administered by two banks, giving enterprises a choice with whom to bank with.
GRTU is particularly pleased by the fact that there is more than one bank active within the SME Initiative because the Maltese banking sector is already plagued by lack of competition and this was the main limitation of the Jeremie scheme. Having another bank on board is a breath of fresh air and shows that more than one bank is willing to help out SMEs.
The assessment of how effective the SME Instrument will be in real terms for small businesses still needs to be done, however, GRTU is confident that through this instrument and through the establishment of the Development Bank, SMEs are heading for a much-awaited, brighter future when it comes to lending for business purposes. GRTU would like to thank Louis Grech and Dr Ian Borg for the success achieved in this area thanks to their efforts.
GRTU’s efforts, in relation to access to finance for small businesses, have now been ongoing for a number of years. GRTU was the catalyst that shed light on the difficult lending practices of Maltese banks. It was also the entity that came up with the idea of establishing a Development Bank and built a case that proved to the European Commission that there indeed is a market failure in lending to businesses and that Malta should be given the green light to establish a Development Bank.
GRTU is once again putting access to finance as one of its 10 Budget priority proposals as progress on the subject has barely materialised. For Budget 2017, GRTU is requesting stronger action from the side of the MFSA and MCCAA following the damning reports published. GRTU expects these to result in lower interest rates and bank charges. GRTU is also calling for incentives to increase players and competition in the banking sector as well as ironing out regulatory stumbling blocks in relation to crowdfunding and venture capital.