HSBC Malta has been closely following the development of the Novel Coronavirus (COVID-19) outbreak and its impact on the world economy. We understand that some of our local business customers may be facing or may face adverse effects as a result of this virus.
As a result we have introduced a range of measures and initiatives targeting different customer segments:
For trade and receivables finance customers
Some of our customers are facing supply chain disruption, with delays in receiving both goods and payments, leaving many with a gap in their working capital cycle leading to cash flow problems.
We have therefore put together a series of measures to assist customers making use of our Structured Trade Finance and Receivables Finance Facilities to support them throughout this period as follows:
In addition, The Global Trade and Receivables Finance (GTRF) team in HSBC Malta are ready to support our customers during this period, including forming solutions that will help us extend credit to our clients in a more structured manner.
HSBC will be close to our customers in sectors that are experiencing increased demand (e.g. medical, healthcare, consumer and certain services). For example some Customers are being required to confirm orders overnight and we are in a position to assist.
We will also be keeping customers updated on export/import restrictions that could significantly impact customers’ supply and distribution chains and help them navigate trade with new counterparties by maximising our network. GTRF colleagues will discuss the implications of different Government schemes that could benefit our customers.
Finally, the past few months has shown the value of going digital by reducing the need for our clients to move paper around. GTRF colleagues are leveraging the new digital capabilities of HSBC group to delivering and increase our e-penetration and make trade and GTRF finance simpler, safer and faster for our clients.
Specific terms and conditions may apply. Please contact us on firstname.lastname@example.org for further information.
In addition we will continue offering the following assistance introduced early this month.
For our customers who meet our credit criteria we will consider the following concessions:
Capital repayment holidays
Where our customers are facing loss of business we will consider short term capital repayment holidays on term lending. Interest repayments will need to continue being made throughout the term of the concession. This will enable businesses to meet other payments until the situation reverts to normal.
Fee free temporary short-term working capital funding
To help customers who are facing cashflow problems due to loss of business arising as a result of the outbreak, we will consider fee free temporary short-term working capital funding.
Faster turnaround on issuance of Shipping Guarantees and waiver of urgency fees
To help customers experiencing delays in receiving shipping documents from counterparties, the Bank will give issuance of shipping guarantees ‘immediate priority’, as opposed to the standard ‘same-day’ issuance. We will also waive our ‘urgency fees’ in such cases. This means a customer can take transfer or receive goods from their counterparty faster without incurring additional costs.
Waiver of amendment fees on Letters of Credit impacted by delays
During this period, customers may experience delivery disruptions resulting in the late shipment and late presentation of documents. The waiver of amendment fees on the Letter of Credit (LC) will enable customers to change the terms of the LC to avoid penalty costs when their supplier presents documents under the LC.
We appreciate that all businesses have their particular requirements, so all concessions will be considered on a case-by-case basis. Customers who feel they need support are asked to contact their Relationship Manager who will be able to provide additional guidance on next steps.
Our customers’ needs are important to us and we will continue assessing what further measures we may be able to take as the situation develops and will make further communications where necessary.