A moratorium has been enacted by Decree-law no. 10-J/2020, under which companies benefit of:
- a prohibition imposed on credit institutions from terminating credit facilities or loans for as long as the moratorium is in force
- extension for a period corresponding to the moratorium period of payment dates of capital and interest payments
- suspension until the end of the moratorium of the obligation to pay capital and interest.
The extension operated by the moratorium shall not give rise to any breach of contract, trigger termination clauses/acceleration events, suspend interest due during the extension, which shall be payable on the payment of the loan with reference to the time when they are due, and termination or cancellation of security created by the companies benefiting from the moratorium (or third parties).
The moratorium shall last until 30 September 2020.
Government has also approved measures in respect of public incentive schemes, as follows:
- advance payments of public incentives to companies
- deferral of maturity of reimbursable incentives, within the public programmes QREN, PT2020, and Wine and Vineyard Institute (Instituto do Vinho e da Vinha)
- assessment of the effects of COVID-19 on the agreed objectives, there being no penalty for insufficient measures or goals achieved due to COVID-19. Within PT2020, costs borne with events cancelled or postponed are eligible for these measures.
Government to create State guarantees in order to increase credit insurance lines, envisaging the support of export and customer diversification, particularly to markets outside the European Union.