Moratorium On Credit Facilities In Exceptional Circumstances Regulations

By means of the Moratorium on Credit Facilities in Exceptional Circumstances Regulations, 2020 (Legal Notice 142 of 2020) (the 'Regulations'), and with the aim of mitigating the serious disturbance to the Maltese economy which threatens the financial stability of Malta, credit and financial institutions have been obliged to grant a moratorium on capital and interest. The measure is meant to soften the financial impact on applicants who can prove that their income has or will be materially affected by the COVID-19 outbreak.

The moratorium of a period of six months (unless extended further by the Minister responsible for Public Health) is applicable to all eligible credit facilities as defined in Central Bank of Malta Directive 18 unless the borrower opts to continue effecting the relevant interest. The moratorium is subject to, inter alia, the following conditions: