Government doubles credit lifeline

The total amount of credit made available by the Portuguese Government to help stricken companies stay afloat during the coronavirus pandemic has been more than doubled from €3Bn to €6.2Bn.

According to TSF radio, Prime Minister António Costa took the decision to double the cash injection earmarked for Portuguese companies, most of which comprise SMEs and micro-enterprises.

The increased cash has been made available after a protocol was signed between the State and the banking sector.

The support being granted by the Government to companies includes four lines of credit, one of which has been redesigned to now embrace not only the 90 Economic Activity Classifications which have been contemplated up until now, but now also includes hundreds of other activities that had fallen outside the support net.

Now included are activities such as agriculture, construction, the paper making industry and services. The amount of this credit line has also increased from €1.3Bn to €4.5Bn.

According to TSF, in the new protocol signed between the State and the banks, hospitality companies continue to be included with €600 million, tourism gets €900 million and travel agencies, tourism entertainment companies and events firms will continue to get a €200 million credit line.