EU clears set up of Malta development bank

Malta said in July it would set up such a bank, inject 200 million euros ($225.50 million) in capital and allow for tax exemptions and guarantees of about 55 million euros.

The Commission said that the bank would not compete with the private sector and was therefore not in breach of EU competition rules. ($1 = 0.8869 euros)

(Reporting by Robert-Jan Bartunek)