On 2 April 2020, the European Commission approved Malta's State aid scheme to support the local economy amid the COVID-19 outbreak.
The scheme has an estimated budget of €350 million to enable public guarantees on loans to support the Maltese economy as it navigates through the current situation. It will also help businesses cover their liquidity needs.
The Maltese government notified the scheme under the EU State aid Temporary Framework that was put into effect on the 19 March 2020. In approving the scheme, the European Commission acknowledged that this measure is necessary, appropriate, and proportionate in line with State aid rules, as well as the conditions set out in the State aid Temporary Framework, namely that the guarantees will only be provided until the end of 2020 and that the guarantees are limited to a maximum period of six years.
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