Featured Product

    CBM Amends Directive on Loan Moratoria Amid Pandemic

    January 14, 2021

    CBM announced that, in view of the impact of COVID-19 pandemic, the Minister for Health, in consultation with the Ministry for Finance, issued Legal Notice 15 on the reactivation of moratoria in Malta. This reactivation allows borrowers to submit their applications for new moratoria or to extend their existing moratoria subject to a number of conditions, before March 31, 2021. In this context, CBM has amended Directive 18 on moratoria on credit facilities in exceptional circumstances. CBM also published a guide on the amendments to the Directive 18, which includes questions and answers to help borrowers understand the options available in their current circumstances.

    In light of the differing economic conditions to those prevalent when CBM Directive 18 was originally issued, the application period is being reactivated with targeted conditions, according to which an applicant can benefit either from the extension to an existing moratorium, or a completely new moratorium. Applicants who are applying for moratorium on a loan that was never subject to a moratorium are entitled to a moratorium of up to nine months. However, borrowers who have benefited, or are benefiting, 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. Loans already benefiting from a moratorium period of more than nine months will not be eligible for a further extension.

    In addition, CBM has amended the Directive No. 8 to establish a new Additional Credit Claims (ACC) framework for individual credit claims granted by credit institutions in Malta that are accredited by the Malta Development Bank under the COVID-19 Government Guarantee Scheme. To this effect, CBM implemented the terms and conditions of the domestic ACC framework as approved by the Governing Council through amendments effected to its Directive No. 8. The amendments to the Directive include CBM’s acceptance of ACC as collateral for Eurosystem monetary policy operations as well as introduction of a new Annex 15 to the Directive, laying down the terms and conditions of the domestic ACC framework. The amendments became applicable from January 01, 2021.

     

    Related Links

    Keywords: Europe, Malta, Banking, COVID-19, Loan Repayment, Loan Moratorium, Credit Risk, Additional Credit Claim, CBM

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582