APS Bank has confirmed it is following up on commitments to assist the Maltese economy in the midst of COVID-19 related disruptions, mainly through accepting requests for loan-repayment moratoriums for commercial and retail customers.

In a previous statement, the bank’s CEO Marcel Cassar had remarked that as APS’ “mood and thoughts turn to the challenging times ahead for the Maltese economy, we are responding with priority to the requests of our customers for support…standing by them and reciprocating their trust”.

APS confirmed that while it has been receiving requests by commercial and retail customers for a loan moratorium, and dealing with such “expeditiously”, it has appointed a COVID-19 Business Response Team.

The team has the authority to engage directly and reply to its commercial and retail customers with its relief measures according to their specific circumstances.

In particular:

For Commercial Customers, the APS is accepting requests for capital moratoria and for minimum periods of three months, reflecting the respective business cycle of that particular industry or segment.

APS is also considering requests for increases in overdraft limits, suspension of financial covenants and other relief measures according to the nature of the request. In all these cases, rescheduling and processing fees are being waived.

Other specific relief measures will also be considered depending on the particulars of the request. An order of priority has been established to ensure that the sectors most impacted will be addressed first but at the same time reassuring that all requests will be considered for as many of the relief measures as possible.

For Retail Customers, in mainly home loan customers facing notable reductions in income, or other circumstances affecting their employment or business activity, APS will receive applications for a moratorium on both capital and interest.

The extent of the moratorium will be generous and agreed with each customer according to the particular case. No processing fees shall be charged.

Commercial Customers are invited to contact their Customer Relationship Manager directly with their request and to discuss options, eligibility and application modalities.

Retail Customers should contact their Branch Manager or Relationship Officer to discuss the same.

Other banks have also begun to offer loan-holidays to its retail and commercial customers. Lombard has come out with one of the most ambitious, offering personal clients impacts a 12-month moratorium on personal and home loans on up to 80% of monthly repayments.

HSBC has offered a three-month moratorium on personal capital repayment loans, also subject to conditions.

So far, BOV has yet to announce similar measures - however a Government allocation of €750 million allows banks to give a loan-holiday to its commercial clients.