Over the last few years, the government has sought to promote the development of the aviation sector through the introduction of legal and administrative infrastructure modelled on the common law system and international conventions, including the adoption of the Cape Town Convention, the creation of a dynamic aircraft and mortgage register and the introduction of comprehensive laws on trust.
Brexit has given rise to a new opportunity for the Malta Ship Registry to consolidate its prominent global maritime flag position and may have a lasting positive impact in this respect. However, the uncertainties caused by Brexit are not the only reason why Malta is a popular flag choice; this article outlines some of the additional benefits.
The Malta flag is often considered a flag of choice for shipowners, charterers and financiers alike. Among the various aspects which make the Malta flag an attractive option are the Tonnage Tax Rules. Legal Notice 128/2018 has significantly contributed to the further enhancement of the Maltese legal framework, and the response by management companies to this new scheme has been positive.
COVID-19 lockdown measures have significantly disrupted cruise ship operations and the financing arrangements in place between financiers and cruise liner companies. Anxious to maintain the good standing of cruise liner companies during the suspension of operations, financiers have been quick to offer debt restructuring solutions to borrowers to fill the liquidity void. At the local level, the most common refinancing exercise involving Malta-flagged vessels is the renegotiation of debt holidays.
If an event of default occurs, a power of attorney executed by the mortgagor will allow the mortgagee to apply for the immediate closure of the vessel's Maltese register on the mortgagor's behalf and to pay all fees, make all declarations and receive all certificates, including the deletion certificate. While not essential for enforcement, registration of the irrevocable power of attorney is nevertheless an option for mortgagees and provides the added benefit of allowing for swifter enforcement in cases of default.
The EU Regulation on Ship Recycling obliges EU-flagged vessels to conduct dismantling operations in European Commission-approved ship-recycling facilities in accordance with the Ship-Specific Ship-Recycling Plan and the Inventory of Hazardous Materials. The regulation aims to mitigate and eventually eliminate the adverse effects of operating, maintaining and recycling EU-flagged ships on human health and the environment.