Home The Malta Independent Financial moratorium related to Coronavirus pandemic extended by three months

Financial moratorium related to Coronavirus pandemic extended by three months

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On 13 April 2020 the Minister for Health, in consultation with the Ministry of Finance issued Legal Notice (LN) 142 of 2020, directing credit and financial institutions licensed by the MFSA to grant loan moratoria to their clients. Directive No. 18 of the Central Bank of Malta was published on the same day to regulate the parameters of these moratoria.

Both the LN and Directive No. 18 set the 30 of June 2020 as the date by which eligible borrowers were to apply with their respective credit or financial institution for these moratoria.

In view of the uncertainty surrounding the speed of the economic recovery from the impact of the COVID-19 pandemic and the potential prolonged effects on output and employment that such uncertainty may generate, the Minister responsible for public health, in consultation with the Minister for Finance and Financial Services, extended the period for applications for a moratorium to 30 September 2020. For this reason, as per paragraph 15 of the Directive, the Bank is extending the application period as per LN 278 of 2020 published yesterday.

The provisions and conditions of the Directive are to apply in full including the cut-off date of the loans eligible for moratoria, namely loans sanctioned before 14 April 2020. Borrowers who are granted a moratorium between 1 March 2020 and 30 June 2020, and can demonstrate that their situation will not improve within the original six months period stipulated by the Directive, may apply by not later than 30 September 2020 for an extension of an additional period of six-months, which will start from the day after the end of the first moratorium period.

In the case of new eligible applicants, the moratorium granted will be for a period of six months.

You can find the updated Directive here.

You can find the updated Guidelines here.

Original article found on The Malta Independent

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