Borrowers who have been negatively affected by COVID-19 will receive a six-month moratorium on repayments on capital and interests.

The Central Bank of Malta has issued a directive to all credit and financial institutions licensed by the MFSA with instruction to offer the six-month moratorium.

The moratorium applies to individuals, households or businesses who can show that they have been negatively affected by the pandemic. The temporary suspension means borrowers will be permitted to postpone capital and/or interest repayments to a later date – without any penalties or restructuring/administrative feeds.

The six-month moratorium came into effect through a Legal Notice published earlier today.

The moratorium is not granted automatically and the borrower will need to apply to the respective credit or financial institution before 30 June 2020.

Banks also have the right to refuse the application as long as this is done within the terms of the Directive.

Borrowers who have been in arrears prior to 1 March 2020 are not eligible for the moratorium.