Three major banks in Malta have announced assistance to customers whose business may be experiencing problems as a consequence of Covid-19.
BANK OF VALLETTA
“Bank of Valletta is announcing a number of measures to support business customers who are being adversely affected by the current COVID-19 scenario.
These measures will be considered on a case-by-case basis on the particular circumstances of each business customer and may include:
Capital repayment holidays ranging from between three and twelve months
Ease of trade finance services via internet banking at no additional cost
Provision of direct working capital for customers facing short term cash flow issues
The Bank is earmarking a fund of €10 million to be able to provide direct working capital for business customers facing cash flow issues. The terms for the provision of direct working capital is for a period of six months priced at 3.5% repayable over twelve months at ZERO charges. Each case will be analysed on its own merits and will still be subject to credit approval and the maximum loan per customer may not exceed €500,000. This will ensure that the allocated fund will be made available to as many customers as possible.
Other initiatives for assistance may be considered depending on the particular exigencies of the business customer.”
Business customers are requested to contact their Relationship Manager who will provide them with additional information on how Bank of Valletta can assist their business.
The Bank is monitoring the current situation on a continuous basis in close collaboration with the government and the health authorities and will be taking all the necessary measures to ensure that the Bank will continue to support the business community.”
Source: Bank of Valletta
The above quoted announcement can be found on this link: BOV Announcement
Lombard Bank has announced that the bank “has contacted each of its borrowing customers offering to assist with cashflow requirements which may result from adverse impact of the COVID-19 outbreak.
Mindful that this outbreak stands to result in negative consequences on the activities of its business customers, the Bank has allotted €12.5 million, to provide temporary working capital requirements to those business customers facing temporary liquidity shortages.
The fund 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 up to 18 months.
Each case will be treated on its own merits and subject to the usual lending criteria, while no bank processing fees will be charged.
The creation of this fund is apart from any other measures which the Bank may introduce to its customers as assistance during these extraordinary times.
Those existing Lombard Bank customers who wish to learn more about availing themselves of this fund are to contact their relationship manager.”
Source: Lombard Bank Plc
The above quoted announcement can be found on this link: Lombard Bank Announcement
HSBC another major bank in Malta has announced on its website:
“For our customers who meet our credit criteria we will consider the following concessions:
Capital repayment holidays
Where our customers are facing loss of business we will consider short term capital repayment holidays on term lending. Interest repayments will need to continue being made throughout the term of the concession. This will enable businesses to meet other payments until the situation reverts to normal
Fee free temporary short-term working capital funding
To help customers who are facing cashflow problems due to loss of business arising as a result of the outbreak, we will consider fee free temporary short-term working capital funding.
Faster turnaround on issuance of Shipping Guarantees and waiver of urgency fees
To help customers experiencing delays in receiving shipping documents from counterparties, the Bank will give issuance of shipping guarantees ‘immediate priority’, as opposed to the standard ‘same-day’ issuance. We will also waive our ‘urgency fees’ in such cases. This means a customer can take transfer or receive goods from their counterparty faster without incurring additional costs.
Waiver of amendment fees on Letters of Credit impacted by delays
During this period, customers may experience delivery disruptions resulting in the late shipment and late presentation of documents. The waiver of amendment fees on the Letter of Credit (LC) will enable customers to change the terms of the LC to avoid penalty costs when their supplier presents documents under the LC.
The above quoted announcement can be found on this link: HSBC Announcement