SME-oriented capital markets platform to be launched soon on the Stock Exchange

A new capital markets platform, named PROSPECTS, was introduced to stakeholders by the Malta Stock Exchange (MSE) on Wednesday 17th February at Le Meridien hotel, St Julian’s.

Malta Stock Exchange | FinanceMalta  

The upcoming launch of a multilateral trading facility is aimed at providing SMEs looking to raise between €1m and €5m to finance their expansion and development with opportunities of direct financing by investors in the market in an efficient and regulated manner and without undue expense. The necessary legislation and regulations that will allow this platform to be set up will be enacted by Parliament soon, Minister for Finance Edward Scicluna announced.

Minister Scicluna said it is indeed good news to see our banks provide various new financing tools for SMEs. Such laudable initiatives offer a much needed support to smaller businesses, in so doing further stimulating our financial market, generating millions in economic activity. Still, it is a fact that companies are increasingly seeking alternatives to financing through banking, and a listing on the MSE should be one of the main avenues companies actively consider.

Minister Scicluna remarked that Malta will soon announce the proper fiscal incentives for family businesses. He added that making firms grow and ensuring family businesses do not break up needlessly is also in the country’s economic interest. Also in the pipeline is the Company Recovery and Resolution Act, which will eliminate all the current fragmented array of legal procedures associated with company liquidation.

Finance Minister Edward Scicluna | FinanceMalta 

He said that businesses need a very clear, transparent and efficient framework for recovery resolution, and that this legislation will be giving companies a second chance and offering them protection as should be the case in any modern country. The draft Bill, he said, has been approved by Cabinet and will be presented in Parliament after further consultation.

“The financial landscape has shifted, and the time is ripe for SMEs and family-run businesses to come out of their safety cocoon, not only to survive but to thrive,” said Minister Scicluna. “We encourage them to take a step forward towards the stock exchange, and platforms such as PROSPECTS - together with other measures that are being introduced - make this easier than ever before.”

(Source: Ministry of Finance)

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