CBM Extends Application Deadline and Duration of Loan Moratoria
CBM issued a legal notice stating that, in view of the impact of COVID-19 pandemic, the Minister responsible for public health, in consultation with the Minister for Finance and Financial Services, extended the period for the application and the duration for moratoria on credit facilities. The six-month moratorium has been extended for a further period of six months while the period of applications has been extended from June 30, 2020 to September 30, 2020. CBM has, therefore, updated its Directive on moratoria on credit facilities to alleviate the challenges posed by COVID-19 pandemic, along with updated frequently asked questions (FAQs) related to the Directive.
CBM had issued the Directive on moratoria on credit facilities in April 2020. The provisions and conditions of the Directive are to apply in full including the cut-off date of the loans eligible for moratoria, namely loans sanctioned before April 14, 2020. Borrowers that are granted a moratorium between March 01, 2020 and June 30, 2020 and can demonstrate that their situation will not improve within the original six months period stipulated by the Directive may apply, by no later than September 30, 2020, for an additional extension of six-months, which will start from the day after the end of the first moratorium period.
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Keywords: Europe, Malta, Banking, COVID-19, Loan Repayment, Loan Moratorium, Credit Risk, FAQ, Deadline Extension, Basel, CBM
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