Other ADB Members

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 40,537.56
% of GDP (2019): 18.08%
% of Regional Total Package: N/A
Package Per Capita in USD: 3,947.41
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline EUR1,000,000,000 USD1,106,194,690
01A - Short-term lending info_outline EUR1,000,000,000 USD1,106,194,690

7 July 2020, EUR1 billion new credit line for micro and small businesses.

01B - Support policies for short-term lending info_outline
01C - Forex operations info_outline
02 - Credit creation info_outline EUR4,663,000,000 USD5,158,185,841
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline
02B1 - Interest rate adjustments

No amount/estimate: (i) The Banco de Portugal (BdP) has relaxed some aspects of its macroprudential measures for consumer credit; (ii) Series of measures directed to less significant banks under its supervision: (a) the possibility to temporarily operate below selected capital and liquidity requirements; (b) a recommendation to restrict dividend distributions; (c) extension of deadlines of some reporting obligations, (d) rescheduling of on-site inspections and the stress test exercise; (ii) June, new consumer credit (maturities up to 2 years), granted between 1/4-30/9 to mitigate households’ temporary liquidity shortages will not have to comply with the DSTI ratio threshold.

02B2 - Other policies to support long-term lending
02C - Loan guarantees EUR4,663,000,000 USD5,158,185,841

(i) Direct state guaranteed credit support to companies that are most affected (EUR400 million) and for microenterprises in the tourism sector (EUR60 million); (ii) State guaranteed credit through the banking system: for restaurants (EUR600 million, EUR270 million for SMEs), tourism (EUR200 million, EUR75 million for SME), tourism accommodation (EUR900 million, EUR300 million for SME), industry (EUR1,300 million, EUR400 million for SME), fishing and aquiculture sectors (EUR20 million). Increased ceilings for export credit insurance schemes for metallurgic, mould, metal and mechanical industries (EUR100 million), construction abroad (EUR100 million), short-term exports (EUR50 million); (iii) 18 August 2020, EUR133 million in public guarantee on temporary loan for urgent liquidity needs of SATA airline; (iv) November 5, EUR800 million public guarantee for item iii in Measure 3A.

03 - Direct long-term lending info_outline EUR3,297,000,000 USD3,647,123,894
03A - Long-term lending info_outline EUR3,297,000,000 USD3,647,123,894

(i) 2 July 2020, EUR1.2 billion Loan to TAP (airline); (ii) 17 September 2020, EUR20 million subsidized credit line for producers of cut flowers and ornamental plant affected by COVID-19; (iii) EUR1.55 billion to support the economy of which EUR750 million for support to SMEs, and EUR800 million for credit lines with public guarantee, including 160 million non-repayable; (iv) 12 March 2021, EUR227 million financing for the social sector and EUR300 million financing for the tourism sector.

03B - Forbearance

(i) No amount/estimate: Rescheduling of banking loans, with maturities extended due in the next 6 months until 30/9, with a moratory on capital and interest, and maturities extended for extra 6 months, applicable to (a) housing credit for families most affected (unemployed, laid-off, in prophylactic isolation or ill due to COVID-19) and (b) loans to firms, self-employed and social institutions; (ii) No amount/estimate: June, BdP implemented EBA Guidelines on legislative and non-legislative moratoria on loan repayments, with conditions not to trigger default of obligor and assessment of distressed restructuring.

04 - Equity support info_outline EUR1,655,000,000 USD1,830,752,212

(i) 2 July 2020, EUR55 million, government will buy shares of TAP (airline) reaching 72.5% in its capital. (ii) June 2021, EUR1.6 billion providing the Portuguese National Promotional Bank, Banco Português de Fomento, with a capital buffer and investing in viable Portuguese firms to address the structural problems of limited access to finance and undercapitalisation.

05 - Health and income support EUR18,617,950,000 USD20,595,077,434
05A - Health support EUR1,030,400,000 USD1,139,823,009

(i) 12 March 2020, EUR296 million to increase the capacity of the health sector; (ii) 14 May 2020, over EUR400 million per month (0.2% GDP) of additional resources for the national health service; (iv) 10 August 2020, EUR8.4 million to double virus testing capacity; (iv) 20 August 2020, EUR26 million for intensive care medicine; (v) No amount/estimate: 1 October 2020, permanent hiring of 2,995 health workers who were hired during the pandemic; (vi) No amount/estimate: 6 November 2020, covernment creates national network of back-up support structures to support people infected with the new coronavirus; (vii) June 2021, EUR300 million for digital health transformation modernising the computer systems of the National Health Service and increasing the digitalisation of medical records compliant with appropriate security principles.

05B - Income support EUR16,499,550,000 USD18,251,714,602
05B1 - Tax and contribution deferrals and policy changes EUR6,200,000,000 USD6,858,407,080

(i) EUR6.2 billion (3.2% GDP) of (within-year) tax and social security contribution deferrals for companies and employees; (ii) No amount/estimate: 29 March 2021, deferral on the payment of VAT and IRS and IRC withholding taxes. (iii) No amount/estimates; 22 July 2021, government approved new extensions of deadlines to comply tax liabilities which includes the annual corporate income tax.

05B2 - Tax and contribution rates reduction

(i) No amount/estimate: Council of Ministers approves VAT return program in the most affected sectors (accommodation, restaurants and culture).

05B3 - Subsidies to individuals and households EUR2,211,000,000 USD2,445,796,460

(i) EUR1 billion per month (0.5% GDP) in financial support for those temporarily furloughed by their employer; (ii) No amount/estimate: Additional financial support is also provided for: the self-employed affected by the virus; people forced to stay home to care for children, and; those sick or in isolation; (iii) No amount/estimate: 18 June 2020, extension on the existing measures for maintaining jobs in companies suffering from the COVID-19 crisis. Moreover, two more instruments are created: (a) compensation for workers with wages below certain minimum and b) incentives for companies to reincorporate workers; (iv) No amount/estiamte: 12 March 2021, Direct EUR438.81/month to culture workers.; (v) 18 May 2021, the allocation of the Guarantee Culture program - for non-business artistic entities - is increased from 12 to 23 million euros: (vi) June 2021, EUR1.2 billion to support housing programs.

05B4 - Subsidies to businesses EUR1,251,350,000 USD1,384,236,726

(i) EUR25 million fiscal package to support the entrepreneurship ecosystem; (ii) 21 June 2020, EUR10 million grants for social companies to hire new employees and adapting to COVID-19; (iii) 20 October 2020, EUR9.35 million Portuguese employment aid scheme to preserve jobs on the Azores Islands during the coronavirus outbreak; (iv) 14 January 2021, extension until March 2021 of the Programa Apoiar: access to aids up to 20% of the reduced profits. All companies whose activities will be affected by the new restrictions could access the "simplified layofff regime", the state will compensate partially or totally employee wages; (v) 12 March 2021, EUR42 million for Garantia Cultura and EUR30 million support for the sports sector. ; (vi) 12 March 2021, extension of the programs Apoiar Rendas and Apoiar + Simples. Financing 50% of business rentals and direct grants for business.; (vii) June 2021, EUR300 million to promote energy efficiency in residential buildings, EUR185 million to support private projects for the production of renewable hydrogen and other gases, EUR650 million digital transformation of SMEs.

05B5 - Indirect income support EUR700,000,000 USD774,336,283

(i) 27 July 2020, EUR7 milllion puchase of equipment for schools; (ii) 14 January 2021, EUR42 million support plan for cultural sector (Plan Garantir Cultura); (iii) June 2021, EUR521 million upgrading technological laboratories and technical equipment in secondary schools and professional training centres and EUR130 million to upgradie science facilities in secondary schools and universities to raise enrolment rates in science, technology, engineering, arts and mathematics courses, particularly of women to promote gender equality and counter stereotypes in career choices.

05B6 - No breakdown (income support) EUR6,137,200,000 USD6,788,938,053

(i) 30 June 2020, EUR125 million to increase investment in education; (ii) November 18, EUR12.2 million aid to agriculture sector to minimize the economic and financial impacts caused by the pandemic Covid-19; (iii) 21 May 2021, government presents Action Plan of EUR6 billion to reactivate tourism.

05C - No breakdown (health and income support) EUR1,088,000,000 USD1,203,539,823

(i) 12 March 2021, remainder of the EUR1.16 billion non-refundable grants in new measures to support the economy. See items (v) and (vi) of Measure 05B4 for some specific measures. (ii) 10 September 2021, direct effects of COVID-19 cost Portugal more than €4.1 billion until July 2021.

06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending and reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received EUR17,600,000,000 USD19,469,026,549
08A - Swaps info_outline
08B - International loans/grants EUR17,600,000,000 USD19,469,026,549
08B1 - Asian Development Bank
08B2 - Other EUR17,600,000,000 USD19,469,026,549

(i) 21 October 2020, EUR1 billion of EU Cohesion policy funds to support Portugal's recovery redirected to COVID programs; (ii) 22 July 2021, EUR16.6 billion financing provided by the Recovery and Resilience Facility with EUR13.9 in grants and EUR2.7 billion in loans.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants

(i) 20 July 2021 Portugal sends 12,000 COVID-19 vaccines, as well as syringes and needles, to Timor-Leste.

10 - No breakdown EUR7,413,000,000 USD8,200,221,239

(i) As of 20 April 2020, a EUR13 billion liquidity scheme, approved by European Commission, is available to provide direct grants and public guarantee loans to companies. Key measures include: (a) EUR1 billion a month financial support (see Non-health in Measure 5); (b) EUR3.7 billion of state-guaranteed credit lines (see Loan guarantees in Measure 2); (c) EUR6.2 billion of (within-year) tax and social security contribution deferrals for companies and employees. Out of EUR13 billion, allocation for EUR2.1 billion is not clear. (ii) 12 March 2021, remainder of the EUR7 billion new measures to support the economy of which EUR1.16 billion are grants (see item i of Measure 05C, item iv of Measure 3A).

11 - Other Economic Measures
12 - Non-Economic Measures
12A - Measures affecting travel and transport (local and international)

(i) Public containment has been implemented on 19 March 2020 after the announcement of the State of Emergency on the 19 March; (ii) Border control with Spain through mutual agreement started on 17 March 2020. Suspended air, rail, and river connections; (iii) 14 January 2021, new COVID-19 lockdown to come into force on 15 January 2021. ; (iv) 01 May 2021, reoped borders with Spain and extended opening hours for cafes, restaurants, and cultural venues. (v) 03 May 2021, for travellers to and from countries with a Covid-19 incidence rate equal to or greater than 500 cases per 100,000 inhabitants, only flights considered essential are allowed. (vi) 15 July 2021, municipalities at high or very high risk of incidence of Covid-19 have more restrictive measures which include limitation of circulation on public roads, daily, between 23:00 and 05:00.

12B - Measures affecting business and workplace

(i) Suspension of all face-to-face school activities (teaching and non-teaching) from 16 March 2020 to be reassessed on 9 April 2020; (ii) Closure of non-essential shops, and all national monuments and places of cultural activities (both public and private); (iii) classes restarted on 14 April 2020 for high school, while TV schooling for primary education; (iv) From 4 May 2020, confinement measures have been eased. Small street shops, hairdressers, bookstores and car dealerships can reopen; (v) 05 April 2021, reopening secondary and tertiary schools, day-care facilities for elderly people, social centers, traditional markets, restaurants and cafes, gyms and the restrictions on shopping will be eased; (vi) 23 September 2021, Portugal will lift almost all remaining COVID-19 restrictiions, allowing full occupancy in restaurants and cultural venues by Oct 1. [update]

12C - Others

(i) 9 November 2020, start of new state of emergency against COVID-19, including nightly curfews; (ii) 11 February 2021, mandatory lockdowns and teleworking extended until end of February.