EY Government Support Package_Portugal

6
Liquidity and financing: Capitalizar 2018 | COVID-19
Capitalizar 2018 | COVID-
19 Line will provide
financing up to €400m to
support operations
negatively affected by
COVID-19.
This line is managed by
‘PME Investimentos’ in
partnership with the
Banking sector and the
Mutual Guarantee System.
The funds provided are
targeted to:
€320m, Working
Capital Management
(through medium-short term
loans)
€80m, Treasury
Management
(through the opening of credit
on a current account)
Who is eligible?
This measure applies to:
Micro companies and SMEs certified
by IAPMEI, or large companies
headquartered in Portugal;
Companies that within an eligible
industry sector (this is a large list,
and excludes the sectors with
specific credit lines and financial
institutions);
For large companies, the business
credit rating must be comparable to
“B-”; and
For individuals with organized
accounts and companies without one
year of activity, a risk rating of “C”.
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;
An absence of debts to Social
Security, the Tax Administration and
FINOVA as of the date of the
contractual agreement; and
An absence of unsettled balances
with the financial sector.
What does it cover?
The credit lines will provide funding to
businesses to help manage treasury and
working capital needs.
Maximum loan amount is €1.5M.
The period of utilization is one year for
working capital and flexible for treasury
management.
The maximum period for repayment is
four years for working capital (with a
grace period for repayment of one year)
and one to three years to treasury
management
The applicant can choose between a
fixed rate scheme (Euribor swap +
spread) or variable rate scheme
(Euribor 1,3,6 or 12 months + spread),
however the financial institution will
define the spread interest rate, being
between 1.928% for working capital and
1.943% for treasury management to
3.278%
MGS will provide a guarantee to the
lender for up to 80% of facility value.
How is it accessed?
Full details were published by the
Portuguese Government on 27 March
2020.
The credit lines are made available
through financial institutions.
Practicalities
All financial operations 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 aim for the loan application,
ensuring it is directed to necessity of
cash management and working capital
needs.
Companies will need to review how to
demonstrate their credit strength.
Companies will need to consider which
and how many lenders to approach and
how 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