> Moratorium on the payment of outstanding credits
Eligible companies may access the credit moratorium regime, in force until September 30th 2020, which:
- Allows the extension or suspension of the payment of outstanding credits contracted with financial institutions for the funding of operations deemed essential to the activity of the company; and
- Prohibits the revocation of contracted credit lines and loans.
During this period, the beneficiary companies will not have to pay any instalments of principal, interest, commissions or other charges for credit agreements covered by the moratorium.
In return, the payment period will be extended for another 6 months. The extension of the term does not give rise to breach of contract or activation of early maturity clauses.
Which credits are covered?
The moratorium regime covers credits in place as of March 27th 2020, deemed essential to the activity of the beneficiary companies, including leasing and factoring, which have been granted by:
- Credit finance companies, investment companies, leasing companies, factoring companies and mutual guarantee companies; or
- Branches of credit and financial institutions operating in Portugal.
The moratorium excludes:
- Credits to purchase securities or positions in other financial instruments; and
- Credits granted to beneficiaries of subsidy or benefit schemes, including tax benefits, to establish headquarters or residence in Portugal, including for investment activity (except "Regressar" Incentives); and
- Credits granted for individual credit cards of board members and employees.
Who can benefit?
SMEs and non-financial companies, individual proprietors, non-profit associations and other social economy entities which fulfil the following conditions:
- Have their head office and exercise their economic activity in Portugal; and
- Have their situation regularized with the Tax and Customs Authority and Social Security (until April 30th 2020, debts constituted in March 2020 are not considered for this purpose); and
- Are not, on March 18th 2020:
- In default or in default on credit agreements for more than 90 days (or, if they do not comply with the materiality criteria set out in Notice of Banco de Portugal No 2/2019 and Regulation (EU) 2018/1845 of the European Central Bank of November 21st 2018); or
- In the event of insolvency or suspension or assignment of payments; or
- To be enforced by any institution with which they have credit agreements.
How to access?
In order to benefit from the moratorium, eligible companies must send the lending institution a declaration of adherence to the moratorium signed by their legal representatives, together with the documentation proving the regularity of their situation with the Tax and Social Security Authority.
- The company may request that only the capital reimbursements, or part of them, be suspended during the moratorium period.
- Interest accruing during the moratorium period will be capitalised in the outstanding amount, except when the beneficiary company has requested only the suspension of capital reimbursements.
- During the period of moratorium, the guarantees granted by the beneficiary undertaking or by third parties shall remain valid and effective and shall be extended for the same period.
If the company fulfils the access requirements, the lending institution shall start the moratorium no later than 5 working days after receiving the declaration and supporting documents, with effect from the date on which the declaration is delivered.
If such access requirements are not met, the lending institution is obliged to inform you of this within a maximum of 3 working days, by means of a communication document sent through the same manner as the declaration of adherence to the moratorium (physical or electronical).
Relevant Legislation:
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