Government measures in key jurisdictions 5th edition - Flipbook - Page 104
Portugal
Specific credit lines available for financial support of Portuguese micro, small and
medium-sized enterprises, Small Mid Caps and Mid Caps:
•
“Linha de Apoio à Economia Covid-19 – Montagem de eventos” (Ä50 million, for event
organization companies);
•
“Linha de Apoio à Economia Covid-19 – Apoio às empresas exportadoras da indústria e
do turismo” (Ä1,050 million, for export companies in industry and tourism);
•
“Linha de Apoio à Economia Covid-19 – Apoio às médias empresas, Small Mid Caps e Mid
Caps” (Ä400 million, for medium-sized enterprises, Small Mid Caps and Mid Caps);
•
“Linha de Apoio à Economia Covid-19 – Apoio às micro e pequenas empresas” (Ä1,000
million, for micro and small enterprises); and
•
“Linha de Crédito Fundo para a Inovação Social – Apoio às micro, pequenas e médias
empresas e entidades da economia social” (Ä50 million, for micro, small and mediumsized enterprises and entities from the social economy sector promoting innovation and
social entrepreneurship initiatives that have been recognised by the Portuguese Social
Innovation Mission Structure).
Export support measures: increase of credit insurance lines guaranteed (i) for the
metallurgical, metal-mechanical and mould sectors (increase from Ä100 million to Ä200
million); (ii) for work abroad and other supplies (from Ä100 million to Ä200 million; and (iii)
for short-term export credit insurance line (from Ä250 million to Ä300 million).
Moratorium on debts: moratorium on debts until 30 September 2021, which provides for
the prohibition of the revocation of contracted credit lines, the extension of credits or
the suspension of the reimbursement of credits until the end of September this year.
Employment
•
Simplified lay-off: lay-offs, which comprise the temporary suspension of employment
contracts or reduction of the working time, have been given more flexibility and the
procedure has eased significantly (“simplified lay-off”). Only available to companies that are
still covered by the closure obligation imposed by the Portuguese Government (currently the
number of companies forced to close or suspend their activity has increased due to the state
of emergency in force and, as such, the Portuguese Government allowed them to access the
simplified lay off for the number of days that the order of closure or suspension of activity
remains in force). Contrary to what previously happened, if from the compensation payment
results an amount lower than the employee’s gross normal remuneration, the amount of
compensation paid by the Social Security is increased to the extent strictly necessary to
ensure 100% of the employee’s remuneration, up to a maximum of 3 guaranteed minimum
monthly salaries (Ä1,995).
•
Extraordinary Incentive for Business Regularization: This incentive aims to support the
maintenance of employment and to reduce the risks of unemployment for employees working
for companies affected by the business crisis, as a result of the pandemic caused by the
Covid-19 outbreak. Companies which have benefited from the simplified lay-off regime may
accede the extraordinary incentive for the normalization of business activity. The payment of
the incentive is made as follows: (i) the payment of the incentive under the modality of one
minimum month wage (Ä635), is made in one installment, within 10 working days as from
the date of communication of the approval of the application to the incentive; (ii) the payment
of the incentive under the modality of two minimum month wages (Ä1,270), is made in two
installments with the same amount, under the following terms.
What
financial support
is the
government
providing to
businesses and
to individuals on
employment
issues?
104
Government measures in key jurisdictions
