Non-profit lender calls out landlords forcing vulnerable families out

Malta’s most marginalised communities have been the worst affected by the economic hardships of the COVID-19 lockdown and a general increase in financial instability. 

“We have been shocked by the levels of hardship being faced by Maltese and non-Maltese alike at this time,” says Christina Lejman, who runs Malta Microfinance, a registered non-profit lending organisation regulated by the MFSA. 

“Significant increases in requests for support for immediate needs – nappies, food, fuel – have shown how poor families are falling through the cracks. Devastating reports of employment exploitation with temporary workers going unpaid through the COVID crisis, having no written contracts, or being subjected to endless rotations of unpaid trial periods.” 

Lejman says Malta Microfinance has been inundated with requests for financial help. Her organisation gives small loans of up to €2,500 to people looking to engage in education, start or expand small businesses or to escape unsuitable housing – all important steps to help them move forward in life. 

“We specialize in assisting vulnerable people such as single women, migrants or low-income households. However, under MMF’s remit we cannot give loans to those who would be unable to repay, nor can we give loans to pay general expenses or to repay other debts,” Lejman says. 

Now her team is facing a situation in which it has to say no to dozens of people who have come to MMF in the wake of COVID, looking for support and assistance that unfortunately do not meet the their lending criteria.  

“We have also seen a lack of understanding from landlords who give no leniency with rental arrears and who force vulnerable families into unsuitable living conditions. This has also led to a rise in those presenting at MMF with no fixed abode at all, exacerbating the issue of rooflessness in Malta,” Lejman said. 

“Perhaps the most concerning increase is in the presentation of individuals facing abuse at home. We have seen an increase in victims of domestic violence, both physical and psychological, who approach MMF looking for solutions and alternatives. This issue is often exacerbated by the presence of children in the household who have not been going to school or outdoor activities, increasing their risk by increasing time at home with abusers.” 

Lejman said that people who come to MMF but cannot be helped with a loan are being referred on to other services that might be in a better position to support them. “Meanwhile we cannot sit by in silence without drawing attention to the increasing gaps and unmet needs of vulnerable members of our community. It is essential that these issues be considered by policy makers and agency heads, as well as the general public, to ensure that all actions taken to mitigate the impact of COVID take into account all subsections of the Maltese community.”