Issue link: https://maltatoday.uberflip.com/i/1220547
12.03.2020 3 NEWS HSBC Bank Malta p.l.c. ('HSBC Malta') has introduced a number of measures to support businesses which may be negatively affected by the Novel Coronavirus (COVID-19) outbreak. These measures, which are coming into effect immediately for those businesses which meet HSBC Malta's credit criteria, include: capital repayment holidays; fee free temporary short- term working capital funding; faster turnaround on issuance of shipping guarantees and the waiver of urgency fees; as well as the waiver of amendment fees on Letters of Credit impacted by delays. Joyce Grech, Head of Commercial Banking at HSBC Malta said, "The outbreak of the Coronavirus is having a significant impact on the global economy and, of course, Malta is also being affected. As we enter what is likely to be a challenging period, particularly for businesses in certain sectors, HSBC Malta is determined to do what it can to provide the support our customers need. As the situation develops, HSBC Malta will continue to monitor the situation and to assess what further measures may be necessary." HSBC Malta commercial customers who feel they require support due to the impact of the Novel Coronavirus on their business, are asked to contact their Relationship Manager who will be able to provide guidance on the next steps. Each request for support will be considered on a case-by-case basis. HSBC Malta introduces measures to support businesses affected by Coronavirus Chamber calls for economic measures to support local companies The Malta Chamber of SMEs echoed a call made by its EU level representative, SME United, to support EU businesses economically in the wake of the Convid-19 outbreak. The Chamber said the country must limit economic damage as much as possible to continue heaving a healthy economy post Convid-19. "As a Chamber representing SMEs from all economic sectors, we can confirm that the Coronavirus has already started leaving an impact on businesses. At this stage the impact varies by sector," the Chamber said in a statement. "With changing consumption patterns some are losing, and others are gaining. There are however some sectors that have already suffered significant losses due their absolute dependence on tourism and incoming events." The Chamber therefore called on the government to support these enterprises in order to avoid their closure and job losses by making use of financial instruments to ensure liquidity and provide working capital by using existing State Aid Rules. "The impact the Coronavirus is having on tourism is expected to last beyond what these enterprises can sustain. With no work these enterprises will not be able to continue paying their employees. There are possibilities under the de-minimis regulation for rescue and restructuring schemes." A detailed weekly analysis among sectors will be conducted by the SME Chamber to monitor the situation. Reports of such analysis will be presented to the government in order to request support as the scenario continues to develop. Whilst initiating the process of the opportunities available under the de-minimis rules, the Chamber also asked the government to give room to support SMEs with payment for taxes and social contributions. Coronavirus FROM PAGE 1 Until Wednesday, Malta had registered six cases of coronavi- rus, with the government hav- ing put in place travel bans to high-risk countries, a mandatory quarantine and restrictions on mass events. "e set of measures which will be announced in due course will abide by the EU state-aid deci- sions and programmes approved for this particular circumstance," Scicluna said. He added that some of these decisions will be taken by EU Finance Ministers at the forth- coming Eurogroup/ECOFIN meetings, due to be held early next week. Scicluna's comments come amid growing concerns within Malta's business community re- lated to the developing Covid-19 situation. Earlier this week, the Malta Chamber of Commerce met with Prime Minister Robert Abela to underline the importance of as- sisting businesses in these ex- traordinary times. e Chamber's president David Xuereb called for an assistance package for businesses to miti- gate any liquidity issues compa- nies may face in the context of temporary loss of business due to the virus. Yesterday, HSBC introduced a number of measures to support businesses, including capital re- payment holidays, fee-free tem- porary short-term working capi- tal funding, faster turnaround on issuance of shipping guarantees and the waiver of urgency fees, as well as the waiver of amend- ments fees on Letters of Credit impacted by delays. e measures will come into effect immediately for business- es which meet the bank's credit criteria. APS Bank said it was confirming its commitment to engage with customers and sectors which were being adversely affected by the virus to determine if any sup- porting measures were required in the circumstances. "Each case would be treated on its own spe- cific merits," APS Bank said in a statement on Wednesday. Almost all hotel conferences booked until May have been cancelled One of the sectors most hard hit by Covid-19 is travel and tourism, which have taken a big hit worldwide. On Wednesday, the Prime Min- ister announced that all air and sea travel to and from Germany, France, Spain, Switzerland and Italy would be halted. Malta Hotels and Restaurants Association president Tony Zah- ra told this newspaper that al- most all conferences which had been planned to be held in local hotels until May have been can- celled or postponed. "When it comes to MICE (meetings, incentives, confer- ences and exhibitions), almost all groups have cancelled their hotel bookings," he said. Asked what would happen to deposits paid to hotels by con- ference organisers, Zahra said that, for events which were post- poned, the hotel would generally keep the deposit until a later date is set. For those cancelled outright, the event organisers would gen- erally lose their deposit – which can run into the tends of thou- sands of euro – depending on the agreement which was signed. "Everyone is tackling the matter different," he said, highlighting that hotels had the prerogative on how to tackle such commer- cial decisions. When it came to leisure book- ings by tourists, the situation was slightly less bleak. "Not all leisure bookings have been cancelled. Bookings are still coming in, but in much smaller number than before. And there are no bookings for the immedi- ate period," Zahra said. Maltese freight transport in Italy still continuing normally With all of Italy on lockdown because of the large number of coronavirus cases, BusinessTo- day asked Fahrenheit Freight Forwarders director Sandro Mallia whether freight trans- portation was encountering any issues. Mallia said that while their drivers had been experiencing some problems, operations were still functioning. "e drivers are checked be- fore they board the catamaran in Malta and scanned again when they arrive in Italy," Mallia said, "Till now, things are still moving." e loading and unloading of goods was still taking place in Italy, and work was progressing normally, till now, he said. " e issue is we don't know what will happen in the future," Mallia noted, however. A source from an unrelated leading Maltese shipping compa- ny mirrored Mallia's feelings of uncertainty. e source told this newspaper that business had to date not been majorly affected, but that there were pre-occupa- tions on what would happen. As the Prime Minister had an- nounced, the source said, the transportation of goods from Italy was continuing. "We've been told by the authorities that we can book drivers," the source said. He underscored, however, that Maltese cargo truck drivers were worried. Until last Monday, he said, drivers returning from It- aly hadn't gone into quarantine, but that the situation had now changed, with mandatory quar- antine being put in place as the spread of Covid-19 in Italy and other European country increas- es. "Our next ship is due on Sat- urday… we don't know what will happen until then." e source said that he felt it would be best if no Maltese drivers travelled to Italy, and that vice-versa no Italian drivers came to Malta. is, he said, could be done if loaded trucks were placed on ships heading towards Malta, without a driver. Stevedores in Malta would then unload the goods. "e safest thing would be for no drivers to come and go. is can be done," he added. Almost all hotel conference bookings cancelled Tony Zahra