On 13th April 2020, the Government of Malta had promulgated the Moratorium on Credit Facilities in Exceptional Circumstances Regulations (the "Regulations"), with the main scope of the Regulations being to regulate the granting of a moratorium by credit and financial institutions on credit facilities with the aim of supporting economically vulnerable persons materially affected by the COVID-19 pandemic.
Regulation 5 of the Regulations, in fact, provides that credit and financial institutions shall grant a moratorium on capital and interest, unless the borrower decides to continue to pay the relevant interest, applicable to all credit facilities satisfying the eligibility criteria established under a directive issued by the Central Bank, with the exception of credit facilities available to other credit and financial institutions. The duration of the moratorium shall be for a period of six (6) months; applications to benefit of same were to be made by the 30th June 2020.
Legal Notice 278, 2020, published during the course of the 30th June 2020, has now extended this moratorium for a further period of six months whilst the deadline for applications to benefit from same has been extended from the 30th June 2020 to the 30th September 2020.
How can we help?
We are monitoring developments on an ongoing basis and will provide further updates as more information becomes available. Meanwhile, should you require any assistance relative to how your business may benefit from this Moratorium on Credit Facilities and other COVID-19 related incentives, the Economic Stimulus Package, Malta's Financial Aid package and the various Malta Enterprise support measures generally, please do not hesitate to reach out to us personally.
Originally published 2nd July 2020.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.