Portugal | ADB COVID-19 Policy Database

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Data updated as of 29 Jun 2020

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 15,222

% of GDP (2019): 6.54%

% of Regional Total Package: N/A

Package Per Capita in USD: 1,480.52

Note: Measures 9 and 10 are added to the sum of Measures 1-5.

Measure	Amount (Local)	Amount (USD)	Details
01 - Liquidity Support
01A - Short-term lending
01B - Support policies for short-term lending
01C - Forex operations
02 - Credit creation	EUR3,730,000,000	USD4,126,106,195
02A - Financial sector lending/funding
02B - Support policies for long-term lending			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. [update]
02C - Loan guarantees	EUR3,730,000,000	USD4,126,106,195	(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).
03 - Direct long-term lending
03A - Long-term lending
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. [update]
04 - Equity support
05 - Government support to income/revenue	EUR7,931,000,000	USD8,773,230,088
05A - Health	EUR696,000,000	USD769,911,504	(i) March 12, EUR296 million to increase the capacity of the health sector; (ii) May 14, over EUR400 million per month (0.2% GDP) of additional resources for the national health service.
05B - Non-health	EUR7,235,000,000	USD8,003,318,584	(i) EUR1 billion per month (0.5% GDP) in financial support for those temporarily furloughed by their employer; (ii) EUR6.2 billion (3.2% GDP) of (within-year) tax and social security contribution deferrals for companies and employees; (iii) 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; (iv) EUR25 million fiscal package to support the entrepreneurship ecosystem; (v) No amount/estimate: June 18, extension on the existing measures for maintaining jobs in companies suffering from the COVID-19 crisis. Moreover, two more instruments are created: (i) compensation for workers with wages below certain minimum and (ii) incentives for companies to reincorporate workers; (vi) June 21, EUR10 million grants for social companies to hire new employees and adapting to COVID-19. [update]
06 - Budget reallocation
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received
08A - Swaps
08B - International loans/grants
08B1 - Asian Development Bank
08B2 - Other
09 - International Assistance Provided
09A - Swaps
09B - International loans/grants
10 - No breakdown	EUR2,100,000,000	USD2,323,008,850	As of April 20, 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.
11 - Other Economic Measures			Banco de Portugal (BdP) has given a recommendation to restrict dividend distributions.
12 - Non-Economic Measures			(i) Public containment has been implemented on the 19th of March after the announcement of the State of Emergency on the 18th of March; (ii) Border control with Spain through mutual agreement started on 17th of March. Suspended air, rail, and river connections; (iii) Suspension of all face-to-face school activities (teaching and non-teaching) from 16th of March to be reassessed on 9th of April; (iv) Closure of non-essential shops, and all national monuments and places of cultural activities (both public and private); (v) classes restarted on April 14 for high school, while TV schooling for primary education; (vi) From May 4, confinement measures have been eased. Small street shops, hairdressers, bookstores and car dealerships can reopen.