Multiple databases on single PostgreSql instance on SAP BTP

Question

I have an CAP application running on SAP BTP CLoud Foundry using PostgreSql. PostgreSql is also hosted on BTP as a service instance and deployed by mta.yaml. All working fine.

Currently I have a new application. Also CAP project. I want to make this application to use the same PostgreSql but in a new database.

Can PostgreSql instance have 2 different databases for 2 different applications and how? I could not find an answer to this question.

I have tried to configure the mta.yaml of new project to use existing PostgreSql in my space but when i try to deploy, it tries to drop tables of previous application because it is also trying to use the same database.

Thanks