COVID-19: Malta Banking sector measures

Local banks published specific assistance that they are providing to businesses in the light of the disruption caused by the COVID-19 pandemic. All cases will be treated on a case by case basis at the discretion of the respective credit institution.

Bank of Valletta plc

  • Capital repayment holidays ranging from between 3 and 12 months
  • Ease of trade finance services through internet banking at no additional cost
  • Provision of direct working capital for customers facing short term cash flow issues. A fund of €20m is allocated. Facilities will be provided for a period of 6 months at a rate of interest of 3.5% and repayable over a period of 12 months. No charges will be applied. Maximum facility to be capped at €500,000 per customer.
  • BoV to close temporarily eight branches
  • Bank of Valletta has also announced flexible timeframes on both capital and interest payments on home loans and personal loans. A payment moratorium will last for a minimum of three months, but it may be tailored according to clients' situation and needs. Applications will be considered on a case-by-case basis.

HSBC Bank Malta plc

  • Customers may apply for a temporary increase in overdraft or credit card limits subject to eligibility criteria.
  • Customers holding a Home Loan or a Personal Loan can apply for a three-month repayment moratorium on home loans and personal loans
  • Late payment fee for all Credit Card accounts will be waived
  • HSBC to close temporarily several branches

Lombard Bank Malta plc

  • Provision of temporary working capital requirements to those business customers facing temporary liquidity shortages. The funds will be offered on favourable terms, including a fixed debit interest rate of 2.5% per annum for amounts up to €350,000 and for a period of up to 18 months. A fund of €12.5m has been allotted.
  • Delay of repayments for clients who have a home loan but have seen a loss of income because of the COVID-19 crisis.
  • Where required, it will grant a 12-month moratorium on 80% of the repayments due every month. The bank stated that this measure will be made without costs, but some conditions may apply.

APS Bank Malta plc

  • Support will be provided on a case by case basis. No further details provided.

BNF Bank 

  • 9-month moratorium on Home Loan, Buy-to-Let Loan and/or Personal Loan; 
  • Cash withdrawals from any local Bank ATM 24/7 will not incur any withdrawal charges. BNF Bank will refund all charges related to cash withdrawal from any other local Bank ATMs, until the end of April;
  • Business customers holding a Micro Business Loan can apply for a nine-month repayment moratorium on their loan. The Bank will not charge any processing fees for requests related to the moratorium and working capital assistance. 

This information was compiled from information published by the respective credit institutions as indicated on their website as of 28 March 2020.

Want to know more?

Related content

Covid-19 Resilence

Covid-19: Financial & Social measures

Earlier this week, the Government of Malta presented a financial aid package to assist those who are in difficulty due to the COVID-19 pandemic. Measures announced include business measures and social measures as briefly described below. Details of the measures announced including the application process are yet to be provided by the Government.

SMEs 3 1600 per 500px.jpg

COVID-19: Financial measures

The Prime Minister of Malta, Dr. Robert Abela, together with the Minister for Finance and Financial Services Prof. Scicluna and with Mr. Silvio Schembri, Minister for Economy, Investment and Small Businesses has announced a number of financial measures to protect the liquidity of businesses at a time when business is being adversely affected by the Coronavirus spread.