Are you eligible for the moratorium announced on repayment of bank loans?
Following the publication of a legal notice providing for a 6-month moratorium on repayment of loans, Central Bank of Malta has published the eligibility criteria to be applied for borrowers to benefit on the repayment of capital and interest.
The moratorium applies to any line of credit and includes loans, advances or overdraft but does not apply to credit cards. Neither does it apply to facilities which are either not performing or where an arrangement would already have been reached with the institution because the borrower cannot meet its financial obligations.
In order to be eligible to make a request for a moratorium, repayments due prior to 1st March 2020 would have to be up to date.
The moratorium is voluntary and you must produce sufficient evidence to show that your income is materially affected by the Covid-19 outbreak in such a way that you are unable to keep up with the repayment commitments of capital or interest either in full or in part.
Borrowers are not obliged to request a moratorium and may also opt to continue to pay the interest, but not the capital. Requests are to be made by 30th June 2020 and are examined on a case-by-case basis. The six-month moratorium period starts to run once the request is accepted.
The information provided does not constitute legal advice.
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