In light of the COVID-19 outbreak, the Government of Malta
issued on the 13th April 2020, the Moratorium on Credit Facilities
in Exceptional Circumstances Regulations (the
"Regulations") through Legal Notice 142 of 2020. The main scope of the
Regulation is to regulate the provision of a moratorium by credit
and financial institutions on credit facilities in order to
mitigate systemic exposure to the Maltese economy by 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 for borrowers with respect to credit facilities satisfying
the eligibility criteria established under Directive No.
18 issued by the Central Bank of Malta (the
"Directive"), which Directive
