Have measures been adopted for accelerating the process of diversifying the economy?

Yes, BNA Order 10/2020, of 1 April, establishes a set of measures designed for boosting the financing of projects of small and medium-sized companies (with more favourable terms and conditions), for 2020 year.

In addition, by means of Presidential Decree 98/20, of 9 April, a financial package consisting in different credit lines was cleared with a view to help micro, small and medium companies in the services-sector keeping operating.

In turn, BNA Order 7/2021, of 4 June (“Order 7/2021”), establishes a set of supporting measures to the sectors of culture, sports, education, transports, restaurants and similar catering services, hotels, tourism and ancillary services. The entities operating in such sectors may request for a moratorium of up to 6 months to pay the credits granted by the banks. To benefit from this measure, these entities must request the moratorium to their commercial bank until 4 July 2021. The provisions under Order 7/21 apply to:

  • credit agreements already in force when the pandemic was declared and that were not in default by that time;
  • moratoriums that provide for an amendment to the instalments plan, either through the suspension, deferment or reduction of the payments of capital, interest or capital and interest, for a limited and predefined time period (of no more than 6 months), and do not entail an amendment to any terms and conditions of the credits, including the interest rate.

 

Which are the key measures launched in this regard?

 

Is there any credit costs’ threshold?

Yes; the total cost of credit cannot exceed 7.5% per year (includes the nominal interest rate and fees and commissions). If covered by a State guarantee, the costs to be paid to the Credit Guarantee Fund (Fundo de Garantia de Crédito) are added to the total cost of credit.

 

 

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This information is being updated on a regular basis.

The information provided and the opinions expressed herein have been prepared with the help of VdA Legal Partners and are of a general nature. They are not in lieu of appropriate legal advice in connection with specific cases.