Maltese Government announces a new Financial Aid Package of 1.6bn to support local businesses during COVID-19 Outbreak

The Maltese Government has announced a €1.6bn Financial Aid Package in an effort to support local businesses combat the downfall effects of COVID-19 and alleviate the impact this is already having on the economy.

These new measures mainly include:

Economic Measures

  1. Up to €700 million in tax deferral payments (this includes the postponement of income tax, VAT and NI contributions due in March and April, 2020).
  2. Up to €900 million in loan guarantees (providing access to additional credit of 4.5 billion).
  3. 3-month moratorium on business and personal loans can be requested.
  4. The Government has also committed to increasing housing subsidies for families with school-aged children in cases where both parents are unable to work remotely to take care of their children and thus require additional leave (capped at €800 per month for up to 2 months)
  5. €35 million injection into health authorities and equipment to help fight the COVID-19 pandemic

 

Direct Employment Measurements

  1. In the case where businesses were forced to suspend all operations due to COVID-19, the Government will pay for 2 out of every 5 days of work forfeited. This also includes self-employed individuals who lost work and will therefore also receive a benefit of 2 days per week (capped at €800 per month/per employee). If such self-employed individuals hire staff, they will also receive Governmental assistance where 3 out of 5 days lost work is covered.
  2. €350 grant per employee to businesses that have had any of the employees under mandatory quarantine.
  3. In the case where companies experienced a stall in operations of at least 25%, the Government will provide guaranteed pay for 1 day per week (based on a monthly salary of €800).
  4. From the 9th of March, any individuals whose job has been terminated including people with disabilities who are unable to work remotely or had to stop working, will receive an unemployment benefit capped at €800 per month.

 

How can E&S help you?

At E&S we are committed to helping you during these uncertain times and can help you alleviate the administrative burden of submitting applications in order to take advantage of these government grants. We also will endeavour to keep you posted on new updates released by the Government related to the pandemic.

 

Please note applications can be submitted as of next Monday 23rd March, 2020, so feel free to get in touch with our CBDO Deborah Vella or CFO Antonella Lia on LinkedIn or email us on info@ellulschranz.com for further information.

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