The Malta Development Bank (MDB) has been officially approved as an implementing partner under the EU’s InvestEU programme, it announced on Monday.
InvestEU accreditation should make it easier for the MDB to expand financing opportunities for Maltese businesses, allowing the development bank to negotiate agreements with the European Commission to tap EU guarantees.
The InvestEU programme was set up in 2021 and given the remit of deploying €372 billion in capital to boost job creation and recovery across Europe in the years to 2027, building on the similar Investment Plan for Europe programme. The programme has a budgetary guarantee of €26.2 billion.
Until now, Malta’s participation in InvestEU funding programmes has been limited to €61.4 million framework operation aimed at helping local SMEs tap financing, according to the programme’s website.
The MDB’s newly acquired accreditation status should allow it to expand that.
“MDB is now among a select group of institutions across the EU to achieve this status after completing a rigorous, multi-year independent audit process,” the bank said in a statement announcing the development.
That audit process, known as the Pillar Assessment, takes years to complete and involves European Commission officials examining institutions’ financial controls and reporting, purchasing procedures, fraud prevention, data protection, policies, and good governance practices.
The MDB will achieve full implementing partner status once it finalises its first guarantee agreement with the European Commission.
