Malta
Measures taken in response to coronavirus (COVID-19) pandemic
Adoption date |
Type of measure |
Beneficiaries' sector specification |
Description of measure |
09/03/2020 |
Direct grants |
Households |
€800 as a wage supplement to employees working in those sectors affected most by the Covid-19 reality. For example, if the salary is €1,000 a month, then the government would contribute €800 a month and the employer would need to allocate €200 a month. |
03/04/2020 |
Public guarantees |
Non-financial corporations |
The Guarantee Scheme of €350 million aims to guarantee loans granted by commercial banks to assist businesses in meeting working capital requirements. The CGS enables commercial banks' lending up to a maximum total portfolio of €778 million. |
13/04/2020 |
Public moratoria |
All non-financial sector |
Central Bank of Malta Directive 18 offers a six-month moratorium on repayments on capital and/or interest for borrowers who have been negatively affected by COVID-19 |
16/04/2020 |
Direct grants |
Non-financial corporations |
Through the Interest Rate Subsidy Scheme, all beneficiaries of the COVID-19 Guarantee Scheme (CGS) (i.e. MT-009 and MT-064) will automatically be benefitting from a subsidy of up to 2.5% on the interest rate charged by commercial banks during the first two years. |
01/03/2020 |
Tax deferrals |
All sectors |
Provisional tax, VAT, social security contributions (national insurance) and employee tax for both self-employed and employers will be postponed for the months of March and April. No interest or penalties to be charged in respect of eligible taxes that would have been deferred in terms of this scheme. |
18/03/2020 |
Direct grants |
Non-financial corporations |
A grant of €350 will be given to employers for every employee on quarantine leave |
18/03/2020 |
Direct grants |
Households |
Parent benefit of €800 per month (€500 in case of part-timers) to one of the parents (including single parents) who took additional unpaid leave to take care of children whilst schools remain closed, when both parents work in the private sector. |
18/03/2020 |
Direct grants |
Households |
Persons with disabilities who have to stay at home due to health concerns that may arise as a consequence of COVID-19 and cannot telework will be entitled to a benefit of €800 per month for a specified period |
18/03/2020 |
Direct grants |
All non-financial sector |
Tenants who will be losing their jobs, and were previously ineligible from the rent subsidy, will be covered. |
01/03/2020 |
Tax deferrals |
All sectors |
Tax deferral scheme applicable to Provisional Tax, Employee Taxes, Maternity Fund Payments and Social Security Contributions, Social Security Contributions of Self-Employed Persons and VAT has been extended. |
09/03/2020 |
Direct grants |
Households |
Workers who already lost or may lose their jobs are entitled to a temporary benefit of €800 per month |
01/07/2020 |
Other measures of fiscal nature |
Households |
Voucher of 100 euros for people over the age of 16 that will boost demand for the hardly hit hospitality industry and other shops closed. Ministry of Economy, Investment and Small business is the implementing institution. |
09/06/2020 |
Tax reliefs |
Households |
Decrease in the stamp duty on the purchase of property. Ministry of Finance and Financial services is the implementing insitution. |
01/06/2020 |
Tax reliefs |
Households |
Tax on property under development or contracts down from 8% to 5%. |
08/06/2020 |
Other measures of fiscal nature |
Non-financial corporations |
An allocation of €10 million for an Export credit guarantee scheme, in order to encourage investment towards exports to new markets like Africa, the Middle East and Latin America |
12/05/2020 |
Other measures of fiscal nature |
Other |
€11.5 million scheme approved by the European Commission under the State Aid Temporary Framework to support investments in the production of products that are relevant to the coronavirus outbreak, including vaccines, ventilators and personal protective equipment. |
14/01/2021 |
Public moratoria |
All non-financial sector |
In view of the protracted impact of the COVID-19 pandemic, the CBM amended Directive 18 to re-activate moratoria in MT. This reactivation allows borrowers to submit their applications for new moratoria or to extend their existing moratoria subject to a number of conditions, before 31 March 2021 in line with EBA/ GL/2020/15. |
19/10/2020 |
Direct grants |
Households |
A revised system of the Wage Supplement Scheme, as announced in the Budget 2021. |
05/04/2021 |
Tax deferrals |
All sectors |
For companies and self-employed persons that suffer a significant downturn in their turnover and liquidity as a result of the economic constraints arising from the coronavirus pandemic, the settlement of eligible taxes was extended and may be settled from May 2022 with no interest or penalties charged. |
19/10/2020 |
Direct grants |
Households |
Voucher of 100 euros for people over the age of 16 that will boost demand for the hardly hit hospitality industry and other shops closed. Ministry of Economy, Investment and Small business is the implementing institution. |
19/10/2020 |
Tax reliefs |
Households |
A reduced stamp duty rate of 1.5% (instead of 5%) when buying a property |
19/10/2020 |
Tax reliefs |
Households |
A reduced final withholding tax of 5% (instead of 8%) when selling a property |
30/03/2021 |
Other measures of fiscal nature |
Non-financial corporations |
Various schemes intended to support the tourism indistry in its recovery and long term sustainability |
10/03/2021 |
Other measures of fiscal nature |
Households |
A revised system of the Wage Supplement Scheme, as announced in the Budget 2021. |
09/06/2020 |
Direct grants |
Non-financial corporations |
Rent scheme and Electricity Support Scheme covering July, August and September 2020 and will cover 50% of the total costs |
20/04/2021 |
Direct grants |
Non-financial corporations |
Rent scheme will be extended by a further 50% over and above the rent assistance provided for 2020; the Electricity Support Scheme will be re-issued, covering June, July and August 2021 and will cover 50% of the total electricity bill |
05/07/2021 |
Direct grants |
Non-financial corporations |
Supporting the organisation of cultural events in line with the guidelines issued by the public health authorities and aims at making organised cultural and artistic events more economically viable for the period between 5th July and 31st August 2021. |
06/07/2021 |
Direct grants |
Non-financial corporations |
Supporting the local agricultural sector to mitigate the negative impact of the COVID-19 pandemic |
03/04/2020 |
Public guarantees |
Non-financial corporations |
The Guarantee Scheme of €350 million aims to guarantee loans granted by commercial banks to assist businesses in meeting working capital requirements. The CGS enables commercial banks' lending up to a maximum total portfolio of €778 million. |
01/03/2022 |
Tax reliefs |
Households |
A reduced stamp duty rate of 1.5% (instead of 5%) when buying a property |
01/03/2022 |
Tax reliefs |
Households |
A reduced final withholding tax of 5% (instead of 8%) when selling a property |
15/01/2022 |
Other measures of fiscal nature |
Households |
A revised system of the Wage Supplement Scheme, as announced in the Budget 2021 has been extended until end-May 2022. |
02/04/2020 |
Dividend distribution policy |
Banking sector |
All licensed credit institutions are to apply Recommendation ECB/2019/19 in its entirety at least until 1 October 2020. |
13/03/2020 |
Buffer usability |
Banking sector |
All licensed credit institutions can make full use of capital and liquidity buffers, including Pillar 2 Guidance. |
13/03/2020 |
Other measure |
Banking sector |
All licensed credit institutions will benefit from relief in the composition of capital for Pillar 2 Requirements. |
15/04/2020 |
Reporting requirements |
Banking sector |
Pursuant to note on LSIs, MFSA granted LSIs one additional month for the submission of applies with the exception of the LCR and ALMM modules, for which no delays apply since these data |
17/03/2020 |
Other measure |
Securities and markets |
Informing of the decision to temporarily suspend the policy to automatically suspend trading of the issuer’s securities when failing to publish the audited financial statements and half-yearly reports within the stipulated deadline until further notice. |
20/03/2020 |
Reporting requirements |
All financial sectors |
Announcing that the MFSA will be accepting a delay from the reporting deadline for some of the submissions/publications falling due by March or April 2020. Followed up with additional sectoral clarifications. |
20/04/2020 |
Other measure |
Banking sector |
The Central Bank of Malta amended Directive no.8 on Monetary Policy Instruments and Procedures to implement ECB Guideline 2020/21 in full, (i) such that the Central Bank of Malta may now accept as collateral for Eurosystem credit operations, marketable debt instruments issued by the central government of the Hellenic Republic subject to certain terms and conditions, (ii) to introduce valuation haircut levels applied to the securities issued by central government of the Hellenic Republic mentioned in (i), and (iii) to introduce valuation haircut levels applied to asset-backed securities under Annex 14 of the Directive which relate to additional temporary measures pertaining to Eurosystem refinancing operations and eligibility of collateral. |
12/03/2020 |
Other measure |
All financial sectors |
In order to minimise physical interaction, with immediate effect, no external face-to-face meetings are being held at the Authority unless face-to-face interactions are unavoidable. All corporate travel for employees is suspended as of 3 March 2020 |
13/03/2020 |
Other measure |
Other |
The Central Bank of Malta restricted staff overseas travel, reduced face-to-face meetings, closed the Victor Pasmore Gallery, the coin museum and the coin shop until further notice. |
17/03/2020 |
Other measure |
Banking sector |
Clarification on the minimum capacity arrangements banks, encouraging the use of phone or digital banking services and referring to the CBM Directive 17 which introduced measures to help alleviate the pressure on encashments. |
25/03/2020 |
Other measure |
Banking sector |
CBM Directive 17 stipulates minimum services expectations to be provided by commercial banks and financial institutions. This is a temporary measure to address the current pandemic restrictions. |
01/07/2020 |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
An eligible undertaking shall be entitled to a grant of up €1,500 per business location, covering the cost of 50% of the power consumed during the months of July, August, September. |
01/07/2020 |
Other measures of fiscal nature (w/o fin. stab. relevance) |
Non-financial corporations |
An eligible undertaking may claim rental costs of up to €2,500 per rental agreement on any licenced business premises rented from third parties for the carrying out of economic activities and logistic related to such activities. To be considered as eligible the rent agreement must have been signed before 9 March 2020 and must expire after 31st December 2020. Renewals of rental agreements signed after 9th March shall be considered eligible if the rental agreement was active prior to 9th March 2020. Implementing body is Malta Enterprise. |
23/07/2020 |
Dividend distribution policy |
Insurance sector |
All licensed Insurance and Reinsurance Undertakings are to apply Recommendation ECB/2019/19 in its entirety at least until 1 January 2021. |
28/07/2020 |
Dividend distribution policy |
Securities and markets |
All licensed Investment Firms are to apply Recommendation ECB/2019/19 in its entirety at least until 1 January 2021. |
18/03/2020 |
Other measures of fiscal nature (w/o fin. stab. relevance) |
Other |
An increase of €35 million towards Health Authorities to combat Covid-19. Financial assistance towards this measure is unlimited |
01/06/2020 |
Borrower-based measure |
Banking sector |
The Central Bank of Malta extended the LTV-O limit applicable to Category II borrowers of 85 per cent, up until 30 June 2021, such that the 75 per cent limit as prescribed in Directive no. 16 on 'Regulation of Borrower-Based Measures' to this Category applies as from 1 July 2021. |
01/06/2020 |
Borrower-based measure |
Banking sector |
The Central Bank of Malta issued Guidance to lenders on the treatment of the stressed DSTI-O for both Category I and Category II borrowers such that the 40% limit as stipulated in Directive no.16 on Borrrower-Based Measures can be temporarily relaxed. This measure will be in place for a period of 6 months and is to be made use of at the discretion of the lender, provided that a number of conditions have been met. |
18/05/2020 |
Other measure |
Banking sector |
Further to amendments made on 20 April 2020, the Central Bank of Malta amended Directive no.8 on Monetary Policy Instruments and Procedures on 18 May 2020 to implement ECB Guideline 2020/29 in full. Amendments pertain to: (i) the admission of certain marketable assets and issuers eligible on 7 April 2020; (ii) new valuation haircut levels applied to asset-backed securities (ABS) and to marketable assets, other than ABS. |
22/04/2020 |
Other measures of fiscal nature (w/o fin. stab. relevance) |
Other |
€5.3 million scheme approved by the European Commission under the State Aid Temporary Framework to support research projects to develop urgently needed medicines and products and innovative analysis tools that can help authorities better tackle the coronavirus health crisis |
27/07/2020 |
Dividend distribution policy |
Banking sector |
All licensed credit institutions are to apply Recommendation ECB/2019/35 in its entirety at least until 1 January 2021. |
15/01/2021 |
Public moratoria (w/o fin. stab. relevance) |
Banking sector |
To provide clarifications to credit institutions licensed in terms of the Banking Act (Cap. 371 of the Laws of Malta) with regard to the application of the European Banking Authority (EBA) Guidelines (EBA/GL/2020/02) on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 crisis and as further amended by EBA/GL/2020/08 and by EBA/GL/2020/15 |
24/12/2020 |
Dividend distribution policy |
Banking sector |
All licensed credit institutions are to apply Recommendation ESRB/2020/15 in its entirety at least until 30 September 2021, as well as act with extreme |
22/12/2020 |
Dividend distribution policy |
Insurance sector |
All licensed Insurance and Reinsurance Undertakings are to apply Recommendation ESRB/2020/15 in its entirety at least until 30 September 2021, and any dividend distributions should not exceed thresholds of prudency. |
23/12/2020 |
Dividend distribution policy |
Securities and markets |
All licensed Investment Firms are to apply Recommendation ESRB/2020/15 in its entirety at least until 30 September 2021, and any dividend distributions should not exceed thresholds of prudency. |
27/01/2021 |
Reporting requirements |
Securities and markets |
The Authority is issuing a clarification on the application in Malta of the one-year postponement of difficulties posed by COVID-19 on both Issuers and Auditors, the Listing Authority has approved that |
30/09/2021 |
Dividend distribution policy |
Banking sector |
All licensed credit institutions that were to apply Recommendation ESRB/2020/15 in its entirety until 30 September 2021. |
06/07/2020 |
Reporting requirements |
Banking sector |
MFSA Banking Rule BR/23. The Authority considers that the monitoring of the application of the measures by credit institutions is crucial for the purposes of risk analysis of individual credit institutions and for the overall financial stability. Since the existing supervisory reporting requirements do not include the information necessary for the monitoring of such measures applied in response to the COVID-19 crisis, this Rule lays out the additional reporting and disclosure requirements that are considered necessary during the crisis. |
25/02/2022 |
Reporting requirements |
Banking sector |
The Rule has been revised to fully align its proportionality measures with those stipulated in the EBA Guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis (EBA/GL/2020/07) issued on the 2 June 2020. More specifically, following clarification by the EBA in its Report on the implementation of selected COVID-19 policies, paragraph 21(a) of the Rule has been amended to allow the granting of this waiver on individual reporting, also to stand-alone institutions not reporting information on a consolidated basis. |