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Portugal

Measures taken in response to coronavirus (COVID-19) pandemic

Adoption date

Type of measure

Beneficiaries' sector specification

Description of measure

13/04/2020

Public guarantees

Non-financial corporations

State guaranteed loans to non-financial corporations, granted by the banking system. In general, the lines may be amortized over a period up to 6 years (some consider a grace period between 1 and 1.5 years). Guarantee level: between 80% and 90% of the principal amount due. In some of these credit lines the Government has allocated the funds to specific sectors of activity.
In September 2021, Banco Português de Fomento, the Portuguese promotional bank, launched a new credit line associated to a new measure to mitigate the impact of the end of loan moratoria that envisages the extension of grace period and maturity of these loans. This measure is targeted at viable firms that operate in most affected sectors and those loans could benefit from a public guarantee up to 25% under strict conditionality. In March 2022, a new credit line to support firms particularly affected by the increase in the cost of energy and intermediate products was introduced by Banco Português de Fomento.

18/03/2020

Public loans

Non-financial corporations

Set up, by Turismo de Portugal (the Portuguese Tourism Agency), of a support line of credit for micro non-financial corporations (less than 10 workers and less than 2 MEUR of total assets/turnover) in the tourism sector. The amount of support is limited to a maximum of 20.000 euros by enterprise and is calculated on the basis of the number of workers. No interest will be charged, the maturity is 5 years, including an initial 12 month grace period, now extended until 30 june 2022. Possibility to convert 20% of the loan into a grant if firms keep the same number of employees on 30 June 2020 when compared with 29 February 2020.

18/03/2020

Moratoria on other claims

Non-financial corporations

12 months moratorium on the amortization of reimbursable subsidies to Turismo de Portugal (the Portuguese Tourism Agency).

18/03/2020

Other measures of fiscal nature

Non-financial corporations

Acceleration of the payment of investment grants in the Portugal 2020 program, for non-financial corporations with a decrease in sales in the 1st quarter of 2020 larger than 20%, vis-à-vis the 1st quarter of 2019.

18/03/2020

Moratoria on other claims

Non-financial corporations

Moratorium on the amortization of reimbursable subsidies for 12 months for the obligations falling due until 30 September 2020, for non-financial corporations with a decrease in sales in the 1st quarter of 2020 larger than 20%, vis-à-vis the 1st quarter of 2019.

18/03/2020

Tax reliefs

Non-financial corporations

Total or partial temporary exemption from the payment of contributions to Social Security (associated to the adoption of layoff measures). In 2020, companies with a significant decrease in turnover benefitted from a temporary exemption from the payment of contributions to Social Security (which varied during the year and according to the size of the firm). Subsequently, since the last quarter of 2020, the exemption has been limited to 50% of the amount due, in the case of micro, small and midsize companies (less than 250 workers and turnover lower than 50 MEUR). Partial reduction of social contributions due in the first 3 months has also been granted to micro companies (less than 10 workers and less that 2 million euros of turnover) that experienced a decrease in their turnover larger than 25%. Since the beginning of 2021, total exemption is limited to firms closed by determination of authorities or that are directly dependent on firms that were closed by determination of authorities.

18/03/2020

Direct grants

All non-financial sector

The first stage of the simplified lay-off regime for companies (activity substantially affected), entitled workers to 2/3 of gross wages (30% employer, 70% Social Security), subject to a minimum and a maximum, applicable from April to July 2020. Subsequently, the lay-off regime was prolonged until the end of 2020, but under different conditions: hours effectively worked shall be paid, hence progressively increasing the amount paid to workers. Total lay-off is restricted to NFC with a minimum of 75% decrease in revenues (which includes permanently closed firms) and the maximum percentage of lay-off becomes dependent on the reduction in the activity. In 2021, only firms with activity closed due to an administrative decision can apply to the simplified lay-off. In this case the employer only pays 19% of the workers' salary and the workers will receive full payment, the difference will be supported by the Portuguese State.
PT short term work schemes also include the progressive recovery of activity, that has been established for other firms affected by pandemic related restrictions (loss of at least 25% of receipts vis-à-vis 2019). The maximum percentage of lay-off is dependent on the reduction in activity. More recently, the Government extended the support until the end of the month (still to be defined) in which all restrictions will be lifted, including travel restrictions in the major tourism markets directed to Portugal. Companies have to comply with a set of restrictions, including the prohibition to fire workers for 90 days.

Establishment of an extraordinary financial incentive to support the normalisation of firms’ activity, totalizing EUR 1270.
Other measures have been implemented associated to the lay-off regime:
Set up of extraordinary support for vocational training, in the amount of 50% of the worker's remuneration up to the minimum wage, together with training costs, for workers not employed in productive activities for a considerable period. Workers participating in this regime cannot be dismissed/fired in the following 60 days. The first stage of the simplified lay-off regime for companies (activity substantially affected), entitled workers to 2/3 of gross wages (30% employer, 70% Social Security), subject to a minimum and a maximum, applicable from April to July 2020. Subsequently, the lay-off regime was prolonged until the end of 2020, but under different conditions: hours effectively worked shall be paid, hence progressively increasing the amount paid to workers. Total lay-off is restricted to NFC with a minimum of 75% decrease in revenues (which includes permanently closed firms) and the maximum percentage of lay-off becomes dependent on the reduction in the activity. In 2021, only firms with activity closed due to an administrative decision can apply to the simplified lay-off. In this case the employer only pays 19% of the workers' salary and the workers will receive full payment, the difference will be supported by the Portuguese State.
PT short term work schemes also include the progressive recovery of activity, that has been established for other firms affected by pandemic related restrictions (loss of at least 25% of receipts vis-à-vis 2019). The maximum percentage of lay-off is dependent on the reduction in activity. More recently, the Government extended the support until the end of the month in which all restrictions will be lifted (still to be defined), including travel restrictions in the major tourism markets directed to Portugal. Companies have to comply with a set of restrictions, including the prohibition to fire workers for 90 days.
Establishment of an extraordinary financial incentive to support the normalisation of firms’ activity, totalizing EUR 1270.
Other measures have been implemented associated to the lay-off regime:
Set up of extraordinary support for vocational training, in the amount of 50% of the worker's remuneration up to the minimum wage, together with training costs, for workers not employed in productive activities for a considerable period. Workers participating in this regime cannot be dismissed/fired in the following 60 days. State grant for workers subject to remuneration reduction due to lay-off regimes.
In addition workers received the difference between the basic remuneration values declared to the Social Security for the month of February 2020 and the complete calendar month in which the worker was covered by layoff and the largest difference was verified, with a minimum of EUR 100 and a maximum of EUR 351.
This measure is concomitant with measure PT-040, as partial or total exemption of Social Security contributions will automatically be attributed.

18/03/2020

Tax deferrals

All non-financial sector

Deferral of tax payments for companies and self-employed (VAT, PIT and CIT), due in Q2 2020. Includes payment on account, additional payment on account and special payment on account. Automatic eligibility for all companies in what regards CIT.  For VAT and PIT, automatic eligibility for companies up to 10 M€ turnover, companies and self-employed open for business in 2019, companies and self-employed having closed by decision of the Health Authority, and companies and self-employed with turnover loss of +20%

18/03/2020

Tax deferrals

All non-financial sector

Deferral of 2/3 of social contributions due on Q2 2020 to Q3 2020. Automatic eligibility for self-employed and companies up to 50 employees. Companies up to 250 employees, if turnover loss of +20%. Larger companies if they had a drop in turnover of 20% or more and operating in tourism sector, civil aviation or others having closed by decision of the Health Authority.

18/03/2020

Direct grants

Households

Self-employed who lost their source of revenue will be granted a monthly income of 439 euros (the Portuguese IAS- Social Support Index).

18/03/2020

Direct grants

Households

Associated to the Government's decision to close schools and day care centres, exceptional support to families has been granted by the Government. The support has been in place during the period in which schools were closed by administrative decision - from 19 March to 19 June 2020, from 15 January to 1 April 2021 and from 3 to 7 of January 2022.

26/03/2020

Public moratoria

All non-financial sector

The PT public moratorium applies to loans granted to (i) households, including emigrants (loans guaranteed by immovable property and credit for consumption as long as it is used for education purposes), (ii) non-financial corporations (independently of their size), (iii) sole proprietors and (iv) some entities with social solidarity purposes. No public guarantee is directly associated. Loans cannot be overdue for more than 90 days in the date fixed in the decree law (the materiality associated to the past due definition (CRR) is also taken into account) and cannot be associated to an ongoing insolvency procedure nor to a bank's loan enforcement procedure. There are further requirements in terms of the tax and social security situation of each borrower and in what concerns the location of the borrower (e.g., the moratorium only applies to NFC whose headquarters are located in Portugal and that develop their activity in Portugal).
In what concerns households, they also need to comply with a set of requirements (e.g. the borrower or someone in the household had a reduction in income larger than 20%, are unemployed, whose labor contract has been suspended due to the current crisis or that were subject to a reduction of working hours, or that were working in firms that were required to closed down during the emergency state period).

06/02/2020

Public loans

Households

Zero interest loan granted by a public housing institute to households that lost income. Suspension of rental contracts' expiring date and possible moratorium in case of income loss.

11/05/2020

Private moratoria

Households

The Portuguese Association of Institutions Specialized in Factoring, Leasing and Renting (ALF - Associação Portuguesa de Leasing, Factoring e Renting), announced an agreement between its associates that establishes a private moratorium regimes beyond the public moratorium approved on the 26th of March (PT-047). The scope of credits granted to households includes leasing of movable and immovable property. Other institutions which are not part of this association may also apply this moratorium.

13/04/2020

Private moratoria

Households

The specialized lending providers association (ASFAC - Associação de Instituições de Crédito Especializado), dedicated to consumer credit, announced an agreement between its associates that establishes a private moratorium regimes beyond the public moratorium approved on the 26th of March (PT-047). The scope of credits granted to households include consumer credit (such as personal credit and car credit). Other institutions which are not part of ASFAC may also apply this moratorium. More recently ASFAC decided to extend the moratorium, until end december 2020.

16/04/2020

Private moratoria

Households

The Portuguese Banking Association announced an agreement between its associates that establishes a private moratorium regime beyond the public moratorium approved on the 26th of March (PT-047). The scope of credits granted to households includes mortgages not included in the public moratorium and other types of loans to households (personal credit and car credit). Other institutions which are not part of this association may also apply this moratorium.

04/06/2020

Public support for trade credit insurance

Non-financial corporations

Further development of better conditions to use credit insurance, namely by sharing the operation risks between the company, the insurance and the State. Further, specific measures towards national transactions may also be included. The risks will be covered by an amount of 2000 million euros in guarantees with public coverage. Of this amount, support ot export credit insurance of 750 million euros is for commercial exports with OECD countries.

12/03/2020

Public support for trade credit insurance

Non-financial corporations

Increase of the ceilings for export credit insurance covering uninsurable risks, in a total of 250 million euros, with the following distribution: from 100 million euros to 200 million euros for metallurgical, mould, metal and mechanical industries; from 100 million euros to 200 million euros for construction abroad; and from 250 million euros to 300 million euros for short-term exports.

N/A

Private moratoria

Households

Private moratorium regimes (described PT-54; PT-55; PT-56) which aim to be complementary to the public one (PT-047).

12/05/2020

Moratoria on other claims

All non-financial sector

Allows for the policyholder and the insurer to agree on a different premium payment regime, enabling, for instance (i) that risk coverage occurs before the payment of the premium, (ii) premium payment in several instalments, (iii) temporary suspension of the premium payment or any other measure regarding the payment of the premium which is more beneficial to the policyholder. Should an agreement not be within reach, in case of mandatory insurance, the policies are kept valid for further 60 days after expiry date, unless the policyholder explicitly opposes to this. After the 60 days period, should the insurance policy not be renewed, policyholder must pay for this mandatory prorogation. Finally, in the event the policyholder has suffered a significant reduction or elimination of the risk covered by the insurance because he was forced to cease or substantially reduce his professional activity as a direct or indirect effect of the measures adopted in response to the pandemic, this Decree-law allows for the policyholder to ask the insurer for a correspondent premium reduction and request for the payment of the premium in instalments.

10/12/2020

Direct grants

All non-financial sector

Micro companies (less than 10 workers and less that 2 million euros of turnover) that experienced a decrease in their turnover larger than 25% will be granted a subsidy up to EUR 1330 per worker, which will be paid in two tranches during the first semester of 2021. An additional EUR 665 per worker may be paid during third quarter 2021. Partial reduction of social contributions due in the first 3 months. Companies receiving this grant cannot fire workers in the subsequent 3 months or install a collective redundancy process.

23/11/2020

Direct grants

All non-financial sector

Direct grant, corresponding to 20% of the loss in revenues in 2020 vis-à-vis 2019, paid out to self-employed (APOIAR + SIMPLES) and companies with an annual turnover of less than 50 MEUR (APOIAR.PT), with activity in sectors particularly affected by lockdown measures associated to the COVID-19 pandemic and whose turnover decreased by more than 25% in the first nine months of 2020 vis-à-vis the same period of 2019. An extraordinary support is provided for the maintenance of activity in the 1st quarter of 2021 as the amount of grant corresponding to the 4th quarter of 2020 is doubled from 20% to 40% of the loss in revenues in 2020 vis-à-vis 2019. A specific programme has been designed for firms in food services activities (APOIAR-Restauração.PT), according to which these firms will be granted an amount equivalent to 20% of their loss in revenues in the days they have been required to close earlier. Firms whose activity has been suspended since March 2020 are entitled to a larger support. Finally, another direct grant (to support rents- APOIAR-Rendas) is paid out to companies which have experienced a sharp decrease in their turnover; the amount depends on the loss of turnover: (i) 30% of the rent, up to 1200 EUR per month, for a turnover loss between 25% and 40%; (ii) 50% of the rent, up to 2000 EUR per month, for a turnover loss larger than 40%; the support will be paid for 6 months in two tranches. All subsidies are cumulative.

10/12/2020

Public loans

All non-financial sector

Loan granted to support tenants and landlords affected by the pandemic - non residential contracts only. It should be used to pay rents due in 2020 that haven't yet been paid. Firms whose activity has been suspended since March 2020 are eligible for a specific credit line with maturity of up to six years and a grace period of up to 12 months.

15/12/2020

Tax deferrals

All non-financial sector

Deferral of VAT, CIT and PIT (withholding tax) payments due in 1H2021 for micro and SMEs whose revenues decreased at least 25% in 2020 vis-a-vis 2019, or any company operating in the accommodation & food or cultural sectors. These taxes may be paid in 3 or 6 interest-free equal monthly instalments. Quarterly VAT due in the 1H 2021 may be paid in 3 or 6 interest-free equal monthly instalments applicable to all companies and self-employed workers. In addition, SMEs may pay the payment on account of CIT due in July and September in 3 interest-free equal instalments; and the reverse charge CIT payments (“autoliquidação”) can be paid in 4 monthly instalments. This measure has been extended for the first semester of 2022, with two differences: i) the required revenue decrease is of 10% in 2021 vis-à-vis 2020, and ii) the reverse charge CIT is not applicable.

30/12/2020

Direct grants

Households

Conversion of part or total of the loan granted by the PT public housing institute to households that had a loss of income (PT-050). The amount of the grant is a fraction of the loan granted and is calculated as a function of the ratio of the cost of rent to income. Households whose income (after tghe reduction observed in the aftermath of the crisis) is equal or less than the rent will be granted a subsidy with the same amount of the loan.

31/12/2020

Public support for trade credit insurance

Non-financial corporations

The policies of export credit insurance and the guarantees of obligations (in the form of external banking or insurance guarantees) shall be exempted from stamp duty if the taxable event occurs until December 31, 2022.

31/12/2020

Direct grants

Households

Households that lost their source of revenue will have a guaranteed minimum average monthly income. To this end, a monthly subsidy is provided between 50 and 501,16 EUR (in most cases) during a maximum of 6 to 12 months.

06/06/2020

Direct grants

Non-financial corporations

Direct grant (“Programa ATIVAR”) to firms that hire an unemployed (for at least 3 months, and after 30/6/2021 for 6 months) through indefinite term employment contract or through a fixed-term contract with a maturity of at least 12 months. For the former a subsidy of 5265.72 EUR is paid in 12 monthly instalments and for the latter a subsidy of 1755.24 EUR is paid in 4 monthly instalments. Firms are required to provide training to new employees. In addition, for each fixed-term contract converted into an indefinite term employment contract an extra subsidy corresponding to 3 salaries with a maximum of 3071.67 EUR (or, after 30/6/2021, 2 salaries up to 2194.05 EUR). A similar grant applies for internships (“Programa ATIVAR Estágios”) to unemployed people with an amount of 65% to 80% of the monthly wage between 438.81 EUR and 1053.14 EUR.

19/03/2021

Public support for trade credit insurance

Non-financial corporations

Approval of a plan which aims to stimulate the risk hedging products for exports, namely through the offering of insurance credit guarantees for OECD markets. Additionally, the plan aims to create stamp duty exemptions over the premiums and commissions of the export credit insurance.

28/05/2021

Direct grants

Non-financial corporations

The VAT supported by consumers in expenditures made in the sectors of activity covered by the measure, during June, July and August (accumulated in an electronic voucher), can be used to pay other expenditures made in the same sectors in October, November and December of 2021 (up to 50% of each invoice).

28/07/2021

Equity participation

Non-financial corporations

The fund has been established to strengthen firms’ solvency situation and avoid firms’ over-indebtedness, through a set of measures aimed at mobilizing public investment in the restructuring of firms’ balance sheets and recapitalization. The State intervention is temporary. The Fund may invest in capital, quasi-capital or debt instruments (including subordinated), and it may also provide guarantees to the capital instruments subscribed by third parties. It may invest directly or co-investment with private investors (including venture capital operators that intend to mobilize other private resources) as well as through funds and other collective investment undertakings. Investments must be compliant with EU State Aid rules. The Fund will be managed by Banco Português de Fomento (the PT promotional bank). The Fund will operate through separate individual Investment Programs, with different characteristics and objectives. o The FCR has currently in place two programs “Programa Consolidar” (“Consolidate Program”) and “Programa Recapitalização Estratégia” (“Strategic Recapitalization Program”) with endowments of 250 and 400 million euros, respectively;

28/07/2021

Public loans

Non-financial corporations

The support will be granted as an interest-bearing refundable subsidy. The amount is a function of the number of employees (€9000 euros per employee) subject to a cap according to firms’ size (25000 euros for micro companies and 75000 euros for small companies). Loans also benefit from up to a 12 month grace period.

15/04/2021

Public support for trade credit insurance

Non-financial corporations

The measure is a “complementary” guarantee that can be issued by private insurance companies on behalf of the State in addition to the primary credit insurance policy in cases where the policyholder is not sufficiently covered by the primary insurance policy.

27/06/2022

Public support for trade credit insurance

Non-financial corporations

The policies of export credit insurance, the guarantees of obligations (in the form of external banking or insurance guarantees) and the guarantees provided by the State are exempted from stamp duty.

07/04/2020

O-SII

Banking sector

Banco de Portugal has decided to postpone by 1 year the phase-in period of the capital buffer for “other systemically important institutions” (O-SII).

24/03/2020

Borrower-based measure

Households

Concerning the macroprudential Recommendation on new credit agreements for consumers, in the context of the COVID-19 pandemic, Banco de Portugal has decided that new personal credit with maturities of up to two years, granted from 1 April until 30 September 2020, and duly identified as intended to mitigate households’ temporary liquidity shortage situations will not have to comply with the DSTI ratio threshold and is also exempted from the recommendation of regular principal and interest payments.

08/04/2020

Special provisioning policy

Banking sector

Banco de Portugal implements EBA Guidelines on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 crisis

16/03/2020

Buffer usability

Banking sector

On 16 March 2020, Banco de Portugal communicated that it allows less significant institutions to operate below the Pillar 2 Guidance and the combined buffer requeriment. On the 26th of August 2020, Banco de Portugal announced that this measure will be in place until at least end-2022, in line with the ECB decision regarding significant institutions.

16/03/2020

Reporting requirements

Banking sector

In line with the European Banking Authority’s decision to postpone the 2020 EU-wide stress test, Banco de Portugal has suspended work of the same nature that was in progress regarding less significant institutions. In addition, in-person activity related to supervision has been postponed and some deadlines for financial institutions to report to Banco de Portugal and to answer customer complaints have been extended.

16/03/2020

Other measure

Banking sector

Banco de Portugal has asked in due time that all less significant banking institutions take appropriate preventive measures to ensure the continuity of their business and the containment of financial losses in a pandemic. Relevant deficiencies detected as a result of procedures to verify these institutions’ readiness to cope with the current circumstances must be immediately reported, as well as the occurrence of coronavirus-related events with a significant negative impact on the institution.

02/04/2020

Reporting requirements

Other

On 2 April 2020, the CMVM issued a Circular Note on the extension of the deadline for supervised entities to file periodic information on anti-money laundering and counter terrorist financing (in accordance with article 21 of CMVM Regulation 2/2020) for 3 months (i.e., until 30 September).

20/03/2020

Reporting requirements

Insurance sector

Flexibilization of statutory and Solvency II reporting and public disclosure deadlines related with 2019 and Q1 2020 reporting

20/03/2020

Other measure

Insurance sector

Suspension of on-site inspections scheduled for 2020

20/03/2020

Other measure

Insurance sector

Recommendation for undertakings to regularly assess the need to adapt/adjust their contingency plans in place

20/03/2020

Other measure

Insurance sector

Recommendation for undertakings to restrict any capital management measure that implies any decapitalization of the undertaking. Restriction of dividend distributions.

20/03/2020

Other measure

Insurance sector

Recommendation for undertakings to closely monitor the amount of lapses and mitigate eventual reputational risk by informing extensively the clients about the consequences of early surrenders

20/03/2020

Reporting requirements

Pension funds

Flexibilization of statutory reporting of the undertakings and public disclosure deadlines related with 2019

20/03/2020

Reporting requirements

Pension funds

Flexibilization of statutory reporting of the pension funds and public disclosure deadlines related with 2019

20/03/2020

Other measure

Pension funds

Suspension of on-site inspections scheduled for 2020

20/03/2020

Other measure

Pension funds

Recommendation for undertakings to regularly assess the need to adapt/adjust their contingency plans in place

20/03/2020

Other measure

Pension funds

Recommendation for undertakings to restrict any capital management measure that implies any decapitalization of the undertaking. Restriction of dividend distributions.

20/03/2020

Other measure

Pension funds

Recommendation for undertakings to closely monitor the amount of lapses and mitigate eventual reputacional risk by informing extensively the clients about the consequences of early surrenders

08/04/2020

Other measure

Insurance sector

Allows for the final exam of the mandatory professional training course to be attended by insurance distributors to be done at distance

13/03/2020

Other measure

Non-financial corporations

Deadlines for annual meetings – including those of entities ruled by the Legal Framework of Venture Capital, Social Entrepreneurship and Specialised Investment (RJCRESIE), as per CMVM clarification dated April 28 – were postponed until 30 June 2020 by Decree-Law no. 10-A/2020, of 13 March.

13/04/2020

Other measure

Securities and markets

On 13 April, the CMVM issued a Circular Note addressed to financial intermediaries and CIS management entities on the extension of the deadline to file with the CMVM the internal control report evaluating the efficiency of the compliance system, of the risk management service and of the internal audit report concerning 2019, until 30 September 2020.

14/04/2020

Other measure

Securities and markets

On 14 April 2020, the CMVM issued the following recommendations to issuers:
a)Issuers whose AGMs have not occurred should be particularly careful with the proposals submitted to be resolved by shareholders. The proposals should be based on detailed information, estimates and assumptions about impacts (occurred and expected in the next periods), namely as far as decisions related to the maintenance of a solid and resilient financing structure are concerned, based in present and future capital needs;

b) Issuers should strongly substantiate any proposals made to the AGM regarding dividend distribution or share buy-back programs. Information must be disclosed namely on the capital availability considering the current context of great uncertainty and the entity must demonstrate the alignment of the proposals with the long-term interests of the issuer and its stakeholders. The proposals should lay on high-quality information, providing in a clear and understandable way an in-depth knowledge about its reasoning and framework considering the medium-term challenges arising from the present circumstances.
c) The policies regarding the remuneration of corporate bodies and managers should also be presented with due concerns on adequate reasoning and information should be provided on the alignment of the proposals with the long-term interests of the issuer and its stakeholders.
d) Financial and non-financial information disclosed by issuers should include, if possible and appropriate, references to possible risks on going concern in the medium-term and measures implemented to mitigate those risks.

20/03/2020

Other measure

Non-financial corporations

On 20 March 2020, the CMVM, AEM (the Securities Issuers Association) and IPCG (the Portuguese Corporate Governance Institute) issued a joint statement urging listed companies to resort to means of distance communication in order to hold the 2020 annual general shareholder meetings. This shall be permitted even when the bylaws of such companies do not foresee that possibility, as long as shareholders are informed in advance of the relevant meeting. Listed companies are also encouraged, to the full extent possible, to resort to electronic means as ways to interact with shareholders in the context of the preparation of the general shareholders’ meeting.

20/03/2020

Other measure

Securities and markets

On 20 March, the CMVM issued a statement alerting about the main procedures that must be observed during audit work, highlighting the following: (i) access of client’s information including audit of groups, collect audit evidence – collect information through alternative procedures and use digital remote work tools; (ii) the auditor’s assessment of going concern and the prospects of an audited company – potential impacts of Covid-19 in business plan – examples: interruptions in the economic circuit, limitations in the supply of goods and services, contractual defaults, decreased revenues and liquidity, among others, are circumstances that can also change the audited entity's expectations regarding its economic and financial situation; (iii) the adequacy of disclosures made by management about the impact of Covid-19 on the company – auditors – an assessment and confirmation, together with the audited entities, of the adequacy of their disclosures in the financial statements and measures implemented within the scope of the infection by Covid-19 must be made to respond to the identified risks; and (iv) re-evaluate the main aspects of audit work, following the rapid changes and impacts resulting from Covid-19, which may require increased availability on the part of audited entities in the provision of information and audit evidence. Any consequences related to Covid-19 should be addressed under applicable national and international auditing standards.

20/03/2020

Other measure

Securities and markets

On 20 March, the CMVM issued a statement alerting about the main procedures that must be observed during audit work, highlighting the following: (i) access of client’s information including audit of groups, collect audit evidence – collect information through alternative procedures and use digital remote work tools; (ii) the auditor’s assessment of going concern and the prospects of an audited company – potential impacts of Covid-19 in business plan – examples: interruptions in the economic circuit, limitations in the supply of goods and services, contractual defaults, decreased revenues and liquidity, among others, are circumstances that can also change the audited entity's expectations regarding its economic and financial situation; (iii) the adequacy of disclosures made by management about the impact of Covid-19 on the company – auditors – an assessment and confirmation, together with the audited entities, of the adequacy of their disclosures in the financial statements and measures implemented within the scope of the infection by Covid-19 must be made to respond to the identified risks; and (iv) re-evaluate the main aspects of audit work, following the rapid changes and impacts resulting from Covid-19, which may require increased availability on the part of audited entities in the provision of information and audit evidence. Any consequences related to Covid-19 should be addressed under applicable national and international auditing standards.

25/03/2020

Other measure

Securities and markets

The deadlines for reporting information on the activity of real estate appraisers, under CMVM Regulation 1/2017, were extended from 31 March to 31 May 2020 and may be further extended for 1-month periods until the last day of the month when the declaration of state of emergency is lifted.

27/04/2020

Other measure

Securities and markets

On April 27, the CMVM issued guidelines to investors regarding market volatility; the importance of (open) capital markets; behavioural bias investors should be aware of when making investment decisions in times of high market volatility; dividend distribution; online shareholders general meetings; and precautions to take regarding fraud on online investment offers

23/06/2020

Moratoria on other claims (w/o fin. stab. relevance)

Insurance sector

Further development of temporary and exceptional measures due to the COVID-19 pandemic in order to provide more protection to the insured in contracts in which there ias a diminishment of risk.
The insurer and insured are allowed to negotiate different terms regarding the premium payment of the contracts, instead of applying the general rule, which was mandatory.

In case both parties do not reach an agreement and the premium payment is not paid in time, in compulsory insurances, the insurance coverage is kept for 60 days from the due date.
If a significative reduction or elimination of the risk occurs, the insured may request a reduction of the premium payment and a fractioning of the refered payment concerning the current annuity.

04/05/2020

Other measure

Non-financial corporations

Programme to support commerce and services (micro and small companies), aquisition of material necessary for the protection of personel/clients (up to 5000 euros per company; endowment of 60 million euros) - 80% non-refundable

06/04/2020

Other measure

Other

All court and arbitration proceedings’ acts / time-limits are suspended until the end of this exceptional epidemiologic situation, which shall occur on a date to be specified by Decree-Law.
In addition, regarding administrative procedures, all deadlines provided for a private person/company to issue any act are suspended. This includes the activity of financial supervison authorities

07/05/2020

Other measure

Banking sector

Banco de Portugal established that credit institutions are required to disclose to their customers information about the moratoria applicable to credit granted to households and business customers, created as a response to the Covid-19 pandemic. In accordance with these rules, institutions must disclose information about the characteristics of the different moratoria that they make available to their customers, identifying whether public or private in nature, their application requirements and procedures, as well as the impacts of such moratoria on the instalment amount and the repayment period for credit operations. It is also mandatory to provide information on the impact of private moratoria on the guarantees underlying the credit that may benefit from the moratorium. Credit institutions are also required to ensure that customers' questions are answered by creating sections of frequently asked questions about the application of moratoria on their website. These requirements cover both public moratoria, established by Decree-Law No 10-J/2020, and private moratoria whose conditions were set taking into account the guidelines of the European Banking Authority.

17/03/2020

Other measure

Households

ERSE has established that the prior notice period for supply disconnections for household customers is extended by an additional 30 calendar days. ERSE may decide to extend this period further, according to the evolution of the situation. ERSE has also established exceptional rules regarding the payment by instalments of debts generated during this exceptional 30-day period. Consumers with payment difficulties who generate a debt with their energy suppliers may request to pay back this debt in instalments, without any interest, for the additional 30-day period.

18/03/2020

Other measure

All non-financial sector

Suspension of tax or contributory enforcement proceedings, for 3 months.

18/03/2020

Other measure

Households

Sick leave due to COVID-19, as well as family assistance under such circumstances, will be paid in full. This also applies to workers affected be quarantine measures.

18/03/2020

Other measure

All non-financial sector

Various measures have been put forward by authorities, like the possibility to use expired documents and other legal requirements such as the car inspection, up to 90 days.

18/03/2020

Other measure

Households

Extraordinary extension of unemployment benefits and all benefits of the social security system, whose concession or renewal period ends before the prevention measures cease. In the case of unemployed, the obligation to actively search for a job has been suspended.

21/04/2020

Other labour market measure

Non-financial corporations

Start‐up COVID19 (financial support per worker); this is a €8 million fund, that can support up to 10 employees per company.

21/04/2020

Other labour market measure

All non-financial sector

Start‐up Voucher (3‐month automatic prorogation); Extension for 3 months of the scholarship of €700 per entrepreneur (up to 3 per project), incubation and mentorship.

21/04/2020

Other labour market measure

Non-financial corporations

Voucher to support start‐up incubators; Support of €1.500 per startup to be paid immediately; Non-refundable; Beneficiaries can’t dismiss or layoff staff for the remainder of 2020; Companies set up less than five years ago;

21/04/2020

Other measure

Non-financial corporations

Mezzanine funding for start-ups - the Mezzanine fund will issue loan tickets of between €50.000 and €100.000 that can be converted into equity.

21/04/2020

Other measure

Non-financial corporations

Funding call by Portugal Ventures (investment); Portugal Venture’s is a key venture capital player in the Portuguese startup ecosystem. This new call is designed to invest in startups with bridge financing and can be used to complement an ongoing investment round.

21/04/2020

Other measure

Non-financial corporations

200M Fund (co‐investment in SME); a fund for co-investment with international partners; managed by PME Investimentos; now accepts new rounds with no need to find new investors; minimum ticket of €500.000; maximum ticket of €5.000.000.

21/04/2020

Other measure

Non-financial corporations

Co‐investment fund for social innovation (up to 42.000.000); a fund for companies working with social impact businesses; managed by PME Investimentos; minimum ticket of €50.000; maximum ticket of €2.500.000

24/03/2020

Other measure

Households

Increase of the maximum amount of payment that can be made with contactless cards from 20 to 50 euros, with the aim to reduce cash payments and the spread of the virus through contact with infected payment machines.

25/03/2020

Other measure

Non-financial corporations

The deadlines for reporting information on the activity of real estate appraisers, under CMVM Regulation 1/2017, were extended from 31 March to 31 May 2020 and may be further extended for 1-month periods until the last day of the month when the declaration of state of emergency is lifted.

26/03/2020

Other measure

Banking sector

Prohibition of banks to charge fixed fees, per operation, on payments by card. Also, no minimum amout will be required in order to pay by card.

27/05/2020

Reporting requirements

Insurance sector

Approval of regulatory standard setting out the flexibilization of statutory reporting of insurance companies, distributors and pension funds, as well of public disclosure deadlines related with their 2019 activity, in accordance with previous indications to the market.

26/05/2020

Other measure

Insurance sector

Recommendations regarding the adjustment of insurance contracts in response to the impacts of covid-19 disease

13/03/2020

Other measure

Securities and markets

Deadlines for annual meetings – including those of entities ruled by the Legal Framework of Venture Capital, Social Entrepreneurship and Specialised Investment (RJCRESIE), as per CMVM clarification dated April 28 – were postponed until 30 June 2020 by Decree-Law no. 10-A/2020, of 13 March

20/03/2020

Other measure

Securities and markets

On 20 March, the CMVM issued a statement alerting about the main procedures that must be observed during audit work, highlighting the following: (i) access of client’s information including audit of groups, collect audit evidence – collect information through alternative procedures and use digital remote work tools; (ii) the auditor’s assessment of going concern and the prospects of an audited company – potential impacts of Covid-19 in business plan – examples: interruptions in the economic circuit, limitations in the supply of goods and services, contractual defaults, decreased revenues and liquidity, among others, are circumstances that can also change the audited entity's expectations regarding its economic and financial situation; (iii) the adequacy of disclosures made by management about the impact of Covid-19 on the company – auditors – an assessment and confirmation, together with the audited entities, of the adequacy of their disclosures in the financial statements and measures implemented within the scope of the infection by Covid-19 must be made to respond to the identified risks; and (iv) re-evaluate the main aspects of audit work, following the rapid changes and impacts resulting from Covid-19, which may require increased availability on the part of audited entities in the provision of information and audit evidence. Any consequences related to Covid-19 should be addressed under applicable national and international auditing standards.

14/04/2020

Other measure

Securities and markets

On 14 April 2020, the CMVM issued the following recommendations to issuers:
a)Issuers whose AGMs have not occurred should be particularly careful with the proposals submitted to be resolved by shareholders. The proposals should be based on detailed information, estimates and assumptions about impacts (occurred and expected in the next periods), namely as far as decisions related to the maintenance of a solid and resilient financing structure are concerned, based in present and future capital needs;

b) Issuers should strongly substantiate any proposals made to the AGM regarding dividend distribution or share buy-back programs. Information must be disclosed namely on the capital availability considering the current context of great uncertainty and the entity must demonstrate the alignment of the proposals with the long-term interests of the issuer and its stakeholders. The proposals should lay on high-quality information, providing in a clear and understandable way an in-depth knowledge about its reasoning and framework considering the medium-term challenges arising from the present circumstances.
c) The policies regarding the remuneration of corporate bodies and managers should also be presented with due concerns on adequate reasoning and information should be provided on the alignment of the proposals with the long-term interests of the issuer and its stakeholders.
d) Financial and non-financial information disclosed by issuers should include, if possible and appropriate, references to possible risks on going concern in the medium-term and measures implemented to mitigate those risks.

27/04/2020

Other measure

Securities and markets

On April 27, the CMVM issued guidelines to investors addressing market volatility, the importance of open capital markets and the possibility to participate on online shareholders general meetings.
As the CMVM highlighted these issues, it also stressed to investors that under such conditions there is more than ever the need to take responsible, informed investment decisions, and that behavioral bias may lead to less rational decisions. A list of precautions that investors should consider and be alerted to regarding digital fraud was also highlighted.

22/05/2020

Other measure

Securities and markets

For public health reasons, within the current context of the Covid-19 pandemic, on 22 May the CMVM sent a Circular Note to financial intermediaries and independent advisors exceptionally allowing that the in-person final examination required regarding initial training set forth in Article 2(2) of CMVM Regulation 3/2018, which financial intermediaries’ staff providing certain categories of investment services and information on financial products and services to investors, as well as independent advisors, are required  to do, be made at a distance, provided that all organizational and monitoring requirements are complied with by the  training provider.The CMVM also advised that, under the current demanding context, the protection of investors and the organizational means to achieve so, including proper staff and respective training and qualification, are particularly relevant.

06/06/2020

Announcement or public statement

Non-financial corporations

Setting up of a promotional bank (which will integrate three existing entities), aimed at supporting firms, including through funding, capitalization and internationalization through credit insurance. The promotional bank should also intermediate European funds to firms. The Portuguese Government has required authorization to the European Commission for the bank to operate as a retail bank. If approved it will be allowed to directly grant loans to firms. This promotional bank will also manage a fund that will be created to promote the capitalization of firms and that should be financed by EU funds (e.g. EIB Pan -European Guarantee Fund.

06/06/2020

Other measure

Households

Additional measures to support households particularly affected by the measures to contain the pandemic or extension of measures already adopted.

04/06/2020

Other measure

Banking sector

Banco de Portugal adopted the ECB’s guidance on the use of macroeconomic forecasts to estimate the expected credit loss during the COVID-19 pandemic. Given that the ECB’s guidance is aimed at significant credit institutions, the Banco de Portugal’s Circular Letter extends it to all other institutions applying IAS/IFRS, including International Financial Reporting Standard 9 “Financial Instruments” (IFRS 9), in the preparation of their financial statements.

04/06/2020

Other measure

Insurance sector

Regulatory standard which allows the submission of new requests for the application of the transitional measures on the risk-free rates and on technical provisions, in exceptional and duly justified cases; and provides the possibility for a temporary waiver, under exceptional circumstances, on the applicable criteria and on the presentation of certain information to the supervisory authority for the prior approval of the use of the volatility adjustment to the risk-free interest rate term structure.

02/06/2020

Reporting requirements

Banking sector

Banco de Portugal implements EBA Guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID‐19 crisis

24/07/2020

Liquidity measure

Households

Until December 31 investors can redeem their funds invested in products categorised as Plano Poupança Reforma (Pension Saving Schemes) up until the monthly limit of the Social Support Indexant without the loss of tax benefits, as long as one member of his household is in one of the following situations: (i) illness or prophyilactic isolation or is providing assistance to their children or grandchildren, (ii) reduction of his normal working hours or suspension of his employment agreement due to a corporate crisis situation, (iii) unemployment and duly registration in IEFP, I.P., since at least 12 March 2020, (iv) elegibility for extraordinary support to the reduction of economical activity of independent worker, or (v) he is a tenant in a rental contract of an urban building for housing purposes efective at 31 March 2020.

24/07/2020

Other state of emergency measure

Insurance sector

The maximum threshold provided for in the budget law for the State to provide guarantees to credit insurance, financial credits, guarantee or investment insurance was increased by 2 250 000 000 euros.

18/08/2020

Other measure

Insurance sector

From September 2020, the on-site inspections scheduled for 2020 will be resumed.

26/08/2020

Other measure

Pension funds

From September 2020, the on-site inspections scheduled for 2020 will be resumed.

18/08/2020

Reporting requirements

Insurance sector

End of the reporting deadlines moratoria for insurance companies.

26/08/2020

Reporting requirements

Pension funds

End of the reporting deadlines moratoria for insurance companies.

18/08/2020

Reporting requirements

Insurance sector

Relieve the extraordinary report obligations

26/08/2020

Reporting requirements

Pension funds

Maintenance of the extraordinary report obligations of pension funds management companies but with flexibility regarding its frequency.

27/10/2020

Liquidity measure

Non-financial corporations

The insurance policyholders of vehicles used in itinerant entertainment and restaurant activities, whose activity has been halted, are allowed to request the fractioning of the payment of the insurance premium up to a maximum of 12 instalments of equal value for annual insurances; or until the maximum number of months corresponding to each fraction, when smaller, without additional costs.
The insurance policyholder of vehicles used in itinerant entertainment and restaurant activites may request the extension of the insurance contracts for the equivalent period for which the activity is suspended, as long as the vehicles are not in circulation.

10/12/2020

Other measure

Non-financial corporations

Extension of rental contracts in the case of firms whose activity has been suspended since March 2020, for a period equal to the duration of the activity suspension, with a minimum duration of 6 months after reopening.

10/12/2020

Other measure

Non-financial corporations

Suspension of tax or contributory enforcement proceedings, for 6 months.

29/07/2020

Supervisory expectations

Banking sector

On July 29, and in line with the ECB recommendation, Banco de Portugal has decided to extend, at least until 1 January 2021, the recommendation to less significant institutions and investment firms, which are under its direct supervision, to avoid distributions that would reduce their own funds, in particular dividend pay-outs and share buy backs. Banco de Portugal has also recommended institutions to be restrictive when determining and paying variable remunerations. The recommendation to suspend dividend distribution and share buy-backs was first adopted in the 1st of April 2020, also in line with the ECB and the EBA communication on this regard.

23/12/2020

Supervisory expectations

Banking sector

Following the December ECB Recommendation for SI, Banco de Portugal recommended less significant institutions and investment firms to exercise extreme prudence when deciding on paying out dividends or performing share buy-backs. As such, for those institutions with profits in 2020, dividend distribution and share buy-backs shall remain below 15% of accumulated profit for the financial years 2019 and 2020 and not higher than 20 basis points of CET1 ratio, whichever is lower. Furthermore, Banco de Portugal extended its recommendation on variable remunerations.

21/12/2020

Dividend distribution policy

Insurance sector

The capital management policies adopted by insurance companies must promote the preservation and reinforcement of the companies' own funds. Dividend distribution, stock buyback, intragroup financing or attribution of variable remunerations to workers are discouraged.

23/12/2020

Dividend distribution policy

Pension funds

The capital management policies adopted by undertakings must promote the preservation and reinforcement of the companies' own funds. Dividend distribution, stock buyback, intragroup financing or attribution of variable remunerations to workers are discouraged.

31/12/2020

Liquidity measure

Households

Until September 30 investors can redeem their funds invested in products categorised as Plano Poupança Reforma (Pension Saving Schemes) up until the monthly limit of the Social Support Indexant without the loss of tax benefits, as long as one member of his household is in one of the following situations: (i) illness or prophyilactic isolation or is providing assistance to their children or grandchildren, (ii) reduction of his normal working hours or suspension of his employment agreement due to a corporate crisis situation, (iii) unemployment and duly registration in IEFP, I.P. (iv) elegibility for extraordinary support to the reduction of economical activity of independent worker (v) being a worker in a situation of economical and social desprotection, (vi) presents a loss of monthly revenue superior to 40% since March to December 2020 in comparison to the monthly revenue in 2019, or (v) he is a tenant in a rental contract of an urban building for housing purposes efective at 31 March 2020.

06/08/2021

Other measure

Households

Banks are obliged to contact households with credit contracts covered by the public moratorium at least 30 days before the date scheduled for the end of the moratorium. This contact is aimed at collecting all the necessary information to assess the financial capacity of borrowers and verify the existence of default risk. If the institution confirms the existence of a risk of default, and if the client has the capacity to comply with the agreement or with and amended agreement, it must submit, at least 15 days in advance of the date scheduled for the end of the moratorium, a proposal to the borrower aimed at preventing the entry of the credit agreement in default. The borrower must, within 5 days, provide the information and provide the elements requested by the institution. Additionally, if the borrower enters in default shall be included in out-of-court arrears settlement procedure (PERSI), the institution cannot terminate the contract or pursue legal actions within 90 days following the end of the default. This period aims to encourage borrowers and banks to reach an agreement. Other more structural adjustments were made to the existing and efficient procedures of households’ credit restructuring PARI and PERSI (e.g., the credit institution cannot raise the loans’ interest rate), but that are applicable to all loans and not only to loans that have been under moratoria.

02/11/2021

Dividend distribution policy

Pension funds

The capital management policies adopted by pension funds management entities must continue to promote the preservation and reinforcement of the companies' own funds. However, management entities no longer need to justify their decision when they communicate the referred operations to ASF.

02/11/2021

Dividend distribution policy

Insurance sector

The capital management policies adopted by insurance undertakings must continue to promote the preservation and reinforcement of the companies' own funds. However, in general, insurance undertakings no longer need to justify their decision when they communicate the referred operations to ASF.

27/06/2022

Other state of emergency measure

Insurance sector

The maximum threshold provided in the budget law for the State to provide guarantees to credit insurance, financial credits, guarantee or investment insurance is 1 500 000 000 euros.

24/05/2022

Reporting requirements

Insurance sector

Fully relieve the extraordinary report obligations of insurance undertakings with the exception of the solvency report on a monthly basis

24/05/2022

Reporting requirements

Pension funds

Fully relieve the extraordinary report obligations which were applicable to pension funds management companies