Moratorium on loan repayments to be extended until 2021

A moratorium on loan repayments must be extended for individuals, households and businesses affected by the pandemic.

Under this scheme, borrowers are allowed to ask their lender for a break in repayments.

Finance Minister Clyde Caruana confirmed Malta timetables that it will be extended until 2021 but did not give more details.

Finance Minister Clyde Caruana says people need to be able to focus on keeping their businesses going Video: Matthew Mirabelli

In a previous extension, borrowers had until September to request the moratorium, which could last up to a year.

Credit facilities sanctioned before March 1, 2020 to individuals, households or businesses that can prove that COVID-19 has slowed their income would be eligible for the freeze.

Caruana explained that the government plans to announce further extensions “soon”, without revealing too many details.

“We would like to make sure that people’s minds are calm about this so that they can focus on their business. People need cash and funding to make sure we keep the economy going and keep businesses from shutting down, ”Caruana said.

During the previous moratorium period, creditors could not impose additional administrative fees intended to penalize borrowers who did not repay on time.

They also have the right to refuse the grant of the moratorium until the refusal is given when there is unequivocal evidence suggesting that the borrower’s hardship is related to COVID.

Borrowers can choose to temporarily waive any payment or pay only their interest.

Payments missed during the moratorium period are then repaid through a corresponding loan extension.

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