A plan to set up a development bank in Malta that would support small businesses has been given the green light by the European Commission.
The bank, which would have an initial investment capital of €200 million, would fund small- and medium-sized companies that find it difficult to attract traditional venture capital, according to a Commission statement. On 24 August the Commission approved of the plans, saying they were not likely to distort competition across the EU by giving Malta an unfair advantage in innovation.
The bank is set to work together with several European funding strands, including Horizon 2020 and the Cosme programme for SME financing. Businesses working with the bank will be eligible for a total of €55m in tax exemptions to help get them off the ground, the Commission said.