EY Government Support Package_Portugal

4
Liquidity and financing: Sector Specific Credit Lines
The Sector Specific Credit
Lines will provide financing
up to €3,000M to support
short-term treasury and
working capital operations,
although with a medium
reimbursement scheme.
The target sectors are:
€1,300m, Industry
(Textile, Clothing, Footwear,
Extractive Industry and Wood &
Cork)
€900m, Tourism
(developments and
accommodations)
€600m, Restaurants
€200m, Tourism
(travel agencies, animation and
organization of events)
Who is eligible?
These measures are available to micro
companies, SMEs, small cap and mid
cap companies that operate within an
eligible industry sector.
Applicants will need to show:
A statement of positive net situation
in the last approved balance sheet or
negative net situation and
regularization in the approved
interim balance sheet up to the date
of the operation.
Applicants should not be considered
as companies in distress as of 31st
December 2019 according to n.18 of
article 2nd of EU Regulation
n.651/2014 of 17th of June (i.e.
considered as a non performing
Exposure)
Applicants will need to have:
An absence of debts to Social
Security and the Tax Administration
as of 1 March 2020 and a
declaration of regularization of
subsequent debts within 15 days
after the first disbursement;
An absence of incidents not
regularized with financial institutions
and the Mutual Guarantee System
(“MGS”) as at the issuance date; and
A declaration of commitment to
maintain all company jobs until 30
June 2020.
What does it cover?
These credit lines will provide funding to
businesses in sectors particularly
affected by COVID-19.
Maximum size of the loan is €1.5m.
Maximum duration of loan is four years,
with a grace period of one year from
repayments of principal or interest.
Spread rate will be from 1.0% to 1.5%.
MGS will provide a guarantee to the
lender for up to 90% of the facility
value. Government will in-turn provide a
counter guarantee of 100% in favor of
MGS.
How is it accessed?
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Full details will be published by the
Portuguese Government on a specific
website that is not yet operational.
The credit lines will be made
available by financial institutions.
Practicalities
All companies are subject to a risk
assessment. Therefore, companies will
need to demonstrate that other than
for the COVID-19 disruption, they
would be considered to be viable by the
lender.
Companies will need to demonstrate
the purpose of the loan application and
to ensure that it is directed to the
necessity of cash management and
working capital.
As applications are made directly to the
financial institutions, companies will
need to consider which and how many
lenders to approach in order to give
themselves the best chance of success.
For more information
Nuno Nogueira da Silva
nuno.silva@pt.ey.com
Tel: +351 914 898 793
Tiago Ferreira da Silva
tiago.silva@pt.ey.com
Tel: +351 913 029 150
Francisco Hamilton Pereira
francisco.hamilton-pereira@pt.ey.com
Tel: +351 937 912 749
6 April 2020
COVID-19: EMEIA EY Government Support Package