Bank of Valletta is earmarking a fund of €10 million to support business customers impacted by the coronavirus ordeal.

Through its various measures, the bank hopes to be able to provide direct working capital for business customers facing cash flow issues.

Local businesses say they are starting to feel the pinch of a decline in trade and cancelled bookings. 

On Thursday BOV said that the terms for the provision of direct working capital is for a period of six months priced at 3.5 percent repayable over twelve months at zero charges.

Each case will be analysed on its own merits and still be subject to credit approval and the maximum loan per customer cannot exceed €500,000.

This will ensure that the allocated fund will be made available to as many customers as possible. 

The 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

Other initiatives for assistance may be considered depending on the particular exigencies of the business customer.

Business customers are being asked to contact their relationship manager who will provide them with additional information on how BOV 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.

Lombard Bank helping borrowers

Lombard Bank said it had set a €12.5 million fund to assist its business customers

It said it had contacted each of its borrowing customers offering to assist with cashflow requirements which may result from adverse impact of the COVID-19

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.

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