2m euros for restructuring

by Franco Aloisio

Slightly more than 2 million euros (Lm0.8m) have been allocated by the European Union for the restructuring of the Maltese manufacturing industry, IPSE chairman Lino Callus announced yesterday.

Mr Callus said that these funds, which form part of the pre-accession funds, could be used immediately by ISPE to assist the manufacturing firms while they undergo restructuring.

Mr Callus said that IPSE was launching several schemes to attract local firms towards its restructuring programmes In fact, IPSE yesterday launched the Loan Guarantee Scheme by means of which, enterprises can borrow up to 50 per cent of the funds they need for restructuring from the local banks at 6.5 per cent interest rate. IPSE also announced other initiatives meant to increase links between local companies. The Collaboration for Growth and the Partners in Business schemes are aimed at facilitating the formation of strategic alliances and cooperative arrangements between companies.

Mr Callus said that since July 1999, 450 companies have approached IPSE and asked for some form of assistance. He said that out of these companies, 10 have already presented business plans, which forms the basis of any assistance given by IPSE. Another 50 are in the process of formulating their business plans.

Minister for Economic Services Josef Bonnici said that apart from EU funding, IPSE can proceed with its work by means of funds allocated by the government. IPSE was given Lm7m from the privatisation of Maltacom.