Malta’s Minister for Public Health, in consultation with the Minister for Finance and Financial Services, has issued Moratorium on Credit Facilities Regulations in Exceptional Circumstances (Directive).
The Directive mandates licensed credit and financial institutions to offer a six-month moratorium on repayments on capital and interest to borrowers who have been negatively affected by COVID-19.
Elements of the Directive include that:
i) the moratorium is not granted automatically, and the borrower will need to apply to the respective credit or financial institution. The moratorium comes into effect once the application has been approved.
ii) credit and financial institutions have the right to refuse the application as long as this is done within the terms of the Directive.
Additional elements are that:
i) borrowers can apply to forego payments of both capital and interest completely for six months, and can also opt to continue to pay the interest but not the capital.
ii) payments missed during the moratorium will be paid during a six-month extension to the term of the credit facility.
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