Act No. I of 2025 (the “Act”) amended Malta’s Merchant Shipping Act (Chapter 234 of the Laws of Malta) (the “MSA”) and introduced significant updates to enhance maritime financing, particularly through the creation of the finance charter security and formalising the registration of mortgages over vessels under construction.
Defining a ‘ship under construction’
The MSA extends its definition of a ‘ship’ to also include a ship under construction, however it vaguely defines a ‘ship under construction’ as a ship which is in the process of being built. A detailed definition which distinguishes between what does and does not constitute a vessel under construction, for the purposes of flag registration, is not provided.
