Companies give up on RRP hopes
The Portuguese Government has set up a new credit lifeline to help companies deal with the impacts of inflation.
According to Jornal de Negócios, the raft of measures will be approved today, as announced by the prime minister in an interview with TVI on Monday.
The amount of credit has not been set, but it will be made available, as in previous cases, through the Portuguese investment bank Banco Português de Fomento through protocols with the banks.
The credit line will help companies deal with the increase in energy prices and other soaring production costs such as raw materials.
The model followed could be similar to the line launched in March to help manufacturing and transport whose production costs soared 20% because of higher energy costs.
In March the amount provided by the credit line was €400 million and companies had to pay a spread varying between 1.25% and 2.5% depending on the maturity of the loan and which can be paid back up to 8 years.
These costs could rise taking into account the increase in interest rates announced by the European Central Bank.