Banks are being instructed to extend moratoria periods for up to nine months as a result of the continuing economic implications of the coronavirus pandemic.  

Borrowers will be able to apply for a completely new moratorium or extend their existing one under a new legal notice issued by the Ministry for Health and Ministry for Finance. 

The new legal notice extends the application period for moratoria until 31st March.

As part of the new directive, applicants who were never subject to a moratorium are “now entitled to a moratorium of up to nine months”, the Central Bank of Malta said in a statement. 

“On the other hand, borrowers who have benefitted, or are benefitting, from a moratorium shorter than nine months can apply for an extension so that the duration of their existing moratorium would be extended to cover a moratoria period of no more than nine months in total,” it said. 

Those who have taken loans are already benefiting from a moratorium period of more than nine months will not be eligible for a further extension.

A moratorium scheme was first introduced last April to help those who were negatively impacted by the COVID-19 pandemic

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