Cap. 574 Art. 6Specific powers of the Bank.

(1)The Bank may:

(a) make loans to;

(b) invest in; and/or

(c) give guarantees, in relation to any person, except a politically exposed person.

(2) The loans, investments and guarantees may be made or given only where, in the opinion of the Board or any committee listed in article 22(2)(d) or officer of the Bank designated by the Board:

(a) the person is engaged, or is about to engage, in an enterprise or project in or for the benefit of Malta;

(b) the amount invested, or to be invested, in the enterprise or project by persons other than the Bank and the character of the enterprise or project are such that the Bank may reasonably expect that those persons will have a continuing commitment to the enterprise or project causing it to willingly meet its obligations in a timely manner; and

(c) the enterprise or project may reasonably be expected to succeed in providing goods and services in a sound and viable manner as well as generating sufficient cash flow to make timely payment of its obligations to its creditors and other stakeholders.

(3) In any circumstances in which the Bank may make a loan or investment to a person, or give a guarantee in relation to a person, under this article, the Bank may:

(a) purchase or otherwise acquire real or personal property or immovable or movables including accounts receivable; and

(b) subject to any right of redemption that may exist, hold, lease to the person or subsequently sell, dispose of or otherwise deal in the said property.

(4) The Bank may:

(a) acquire and hold senior or subordinated security or a security interest or a right in a security, of any kind and in any form for the due discharge of obligations it makes or gives;

(b) surrender a security, security interest or right in a security and acquire and hold, in exchange, security or a security interest or a right in a security, of any kind and in any form;

(c) realise a security, security interest or right in a security made, acquired or held by it on the loan, investment, guarantee or agreement; and

(d) exchange, lease, sell, assign, convey or otherwise dispose of a loan, investment, guarantee, agreement, security, security interest or right in a security.

(5) The Bank may acquire and deal with as its own any loan, investment or guarantee made or given by another person if:

(a) the loan, investment or guarantee would meet the Bank’s eligibility criteria in sub-article (2); or

(b) it is part of a block of loans, investments or guarantees the majority of which meet those criteria.

(6) In applying sub-article (1), the Bank may:

(a) finance enterprises, businesses and projects of all sorts, but particularly those that contribute to a high quality, dynamic, productive and innovative economy;

(b) provide suitable access capital to small and medium-sized enterprises, the professions, and business start-ups;

(c) finance projects by cooperatives, social enterprises and housing projects, particularly where they involve urban renewal;

(d) fund important regional or national infrastructural projects, particularly those that enhance Malta’s competitiveness;

(e) grant loans and other forms of financing for the purpose of project or projects to authorities, agencies, corporations, special purpose vehicles, and other entities established under public law;

(f) grant other financings in the interest of the Maltese and European economy, such as projects in the interest of the European Union that are co-financed by the European Investment Bank or similar multilateral financing institutions;

(g) provide financial and project advisory services;

(h) carry out other operations to the extent that there is a direct relationship between such operations and the performance of its functions described hereinabove; and

(i) guarantee, whether as primary or secondary obligor, in whole or in part, loans for economic development participated in by the Bank. activities to the provision of:

(a) aided financing authorised under –

(i) the General Block Exemption Regulation;

(ii) approved aid schemes;

(iii) approved aid under specific guidelines issued by the European Commission; and

(iv) EU financial instruments funded from EU funds, where the Bank will act as a vehicle to channel and manage EU funds, or as co-investor;

(b) aid that fulfils the conditions of the de minimis Regulation at the level of the final beneficiaries;

(c) financing on market terms to eligible final beneficiaries covered by the General Block Exemption Regulation, where all the conditions of the relevant articles of the General Block Exemption Regulation are complied with, except the requirements relating to aid intensities or maximum aid amounts, subject that, in the cases of infrastructure projects, participation by private investors shall be at least fifty (50) per centum pari passu with the Government;

(d) financing of participation in EU financial instruments on market terms;

(e) provide such other financing subject to prior approval by the European Commission.

(8) The Bank may raise both short-term and long-term funding by borrowing on a bilateral basis, and issue:

(a) certificates of deposit;

(b) fixed or floating rate certificates; and

(c) other securities, in Malta and elsewhere.