It's all on a case by case basis

Three of the main commercial banks said they would not be charging a higher interest rate for clients who availed themselves of the moratorium, HSBC said it might and APS chose not to answer.

HSBC said the implementation of a higher interest rate was "judged on a case by case basis".

Bank of Valletta, Banif and Lombard said it was not policy to charge higher interest rates as a result of the moratorium.

While BOV answered with a plain "no", both Banif and Lombard qualified their answer. "It is not the bank's policy to charge higher interest rates for clients who opt for the moratorium. Notwithstanding this, we reserve the right to revise the interest rate for other reasons not connected with the issue of the moratorium to safeguard the interest of our shareholders and depositors," a spokesman for Banif Bank said.

A similar answer came from Lombard Bank.

"The fact that the bank may allow a moratorium should not, on its own, give reason to a different interest rate to be applied from that at present," a spokesman for Lombard said.

All the banks confirmed that the moratorium would not apply automatically to those clients who own hotels because each case would be judged on its own merits.

When asked what were the eligibility criteria for benefitting from the moratorium, the banks came back with a similar reply.

HSBC said that a "range of criteria" applied while BOV and Lombard spoke of "normal lending".

Banif insisted that "in principle" all clients would be eligible unless there were "specific business reasons", which restricted the bank from granting the moratorium.

As for the conditions imposed on moratorium beneficiaries, the general reply was each case would be determined on its own merits.

"Normal moratorium conditions apply. The moratorium applies to capital repayments and excludes accrued interest," BOV said.

The Lombard spokesman insisted that the basic principles of bank lending would be applied "including the relativity between risk and reward".

In a slightly more detailed reply, Banif said each case would be discussed with its clients individually and "alternative repayment options" would be offered. These would also include either the adjustment of the repayment amount following the moratorium or the extension of the term of the loan at the bank's discretion.

On its part, HSBC reiterated that applications would be considered on a case by case basis.

Questions were also sent to APS Bank but a spokesman said the information was deemed to be "confidential". "The bank does not feel that it is pertinent to discuss or share such information with third parties," APS said.