Bank of Valletta and APS Bank will offer an interest rate of 0% for those who will take a loan to invest in an electric or hybrid vehicle and initiatives in favour of energy efficiency and renewable energy.
This was announced by Minister Aaron Farrugia, Minister Silvio Schembri and Parliamentary Secretary Chris Bonett during a press conference.
This will be possible through the EERE financial instrument under the European Regional Development Fund where a total of €15 million have been allocated for this scheme. The scheme consists of a portfolio guarantee and a subsidy in the interest rate for 10 years, which will help to offer an interest rate of 0% for those who will take a loan.
Private individuals, SMEs, large enterprises, constituent bodies and entities in both the public and private sector can benefit from this scheme.
One can take out the loan for the purchase of an electric or hybrid vehicle; an EV charging station; connections to energy supplies for photovoltaic systems; insulation systems; ventilation systems; and other measures relating to the conservation of water.
Minister Aaron Farrugia said that the transport sector can be a major contributor in favour of the ecological transition that Malta is undergoing. This is because the sector itself is responsible for most of the emissions generated. He emphasised how these loans, together with the financial grants that Transport Malta is offering, will be giving an important stimulus to those who wish to shift to electric vehicles.
“Transport Malta is offering up to €13,000 in financial grants to those who want to buy an electric vehicle. There are also grants for vehicles for commercial use and motorbikes. The financial grants offered by TM and these interest free loans are important to incentivise people to switch to more sustainable travel,” concluded Minister Farrugia.
Minister Silvio Schembri said that the environment is a top priority for this Government and that this scheme is a way for both public and private companies, as well as individuals, to make better environmental choices, without extra costs.
“A better environment for our children means that all of us make the necessary choices to make a difference, in our homes and in our workplaces and businesses with a choice of clean energy. As a government we are facilitating this change with the launch of such schemes,” stated Minister Schembri.
Parliamentary Secretary Chris Bonett said that banks play an important role in the economy, and they will now have a more central role in the move towards sustainable development.
“This scheme is among the most flexible and aimed at everyone, both large and small businesses, individuals, public entities and open to the financing of a very varied investment including the purchase of electric vehicles, better insulation in buildings and measures that help in the conservation of water,” stated Parliamentary Secretary Bonett.
Photos: DOI, MTIP, MEFL
