The COVID-19 pandemic led many businesses and households to experience financial difficulties which may have resulted in borrowers not being able to meet their debt obligations. In order to alleviate the burden, several public and private moratoria were put in place and offered by credit institutions. In order to avoid a significant increase in non-performing loans (NPL), the EBA issued Guidelines which allow banks to avoid treating exposures subject to moratoria granted due to the COVID-19 crisis as forborne or defaulted. Banks must ensure that the correct treatment is applied when classifying exposures so as to avoid any build-up of NPLs which may arise due to a misclassification or misreporting. Banks are reminded that they must do their utmost to keep their NPL levels low. Failure to do so may result in the Authority applying supervisory measures in terms of the relevant legislation. In this context, banks should make reference to any publication issued by the Central Bank of Malta and the MFSA.