Maltese banks are setting aside tens of millions to help combat any adverse economic impact the outbreak of the COVID-19 coronavirus could have on the country.

Lombard Bank Malta and Bank of Valletta have set aside €12.5 million and  €10 million to deal with any cash flow issues brought on by economic stagnation.

The Tourism Industry is already experiencing a massive slowdown, with the government blocking all non-essential to Italy, Germany, France, Spain, and Switzerland.

Malta’s English Language schools have already predicted a €3.4 million economic loss, with a close to 40% cancellations.

An emergency economic committee has already been set up, following the business community’s rising concerns. With the virus now declared a pandemic, concerns for Malta’s economy will only grow.

The banks’ funds aim to provide temporary working capital requirements to those business customers facing temporary liquidity shortages.

Lombard’s will be made available on a fixed debit interest rate of 2.5% per annum for amounts up to €350,000 and for a period up to 18 months. While BOV is pricing there’s 3.5% repayable over twelve months with zero charge.