Malta’s maritime industry is largely governed by the Merchant Shipping Act of 1973, Chapter 234 of the Laws of Malta (the “Merchant Shipping Act”), a legislative cornerstone regulating among others, vessel registration, security interests such as mortgages, safety standards, seafarers’ rights and shipowner obligations. Over the years, the Merchant Shipping Act has evolved to keep pace with global maritime trends, and now, it stands on the brink of another major transformation through Act No. I of 2025 (the “Act”).
A key aspect of the Act is the introduction of the finance charter instrument, formalising the concept of a finance charter interest as a legal mechanism for securing the rights of a finance lessor. This article explores the implications of this security instrument and its potential impact on ship financing in Malta.
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