COVID-19: Moratorium On Credit Facilities Payments

Against the backdrop of the COVID-19 outbreak, on 13^th April 2020 the Government of Malta promulgated the Moratorium on Credit Facilities in Exceptional Circumstances Regulations (the "Regulations").

The main scope of the Regulations is to regulate the provision of a moratorium by credit and financial institutions on credit facilities with the aim of supporting economically vulnerable persons who have been materially affected by the COVID-19 pandemic.

The Regulations mandate credit and financial institutions, licensed under the Banking Act (Cap. 371 of the Laws of Malta) and under the Financial Institutions Act (Cap. 376 of the Laws of Malta) respectively, to grant a six-month moratorium on capital and interest to borrowers with respect to credit facilities satisfying the eligibility criteria set by the Central Bank of Malta in a Directive (the "Directive"), which Directive also delves into other conditions related to the implementation of the Regulations.