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Factsheet for case PT-2020-13/990 Updated – measures in Portugal

Banking moratoriums

Moratórias bancárias

Country Portugal , applies nationwide
Time period Temporary, 27 March 2020 – 30 September 2021
Type Legislations or other statutory regulations
Category Measures to prevent social hardship
– Preventing over-indebtedness
Author Heloisa Perista and Maria da Paz Campos Lima (CESIS) and Eurofound
Case created 13 July 2020 (updated 22 January 2021)

Background information

The Decree-Law 10-J/2020, of 26 March, in force since 27 March, established extraordinary measures for the protection of bank clients in the existing context of public health emergency, creating a moratorium regime regarding the fulfilment of the obligations due for credit contracts. This moratorium in is force until 30 September 2020.

The Resolution of the Council of Ministers 41/2020, of 6 June, that approved the Economic and Social Stabilization Programme extends the existing banking moratorium until 31 March 2021.

Content of measure

The Decree-Law 10-J/2020, in force since 27 March, established extraordinary measures for the protection of bank clients in the existing context of public health emergency, creating a moratorium regime regarding the fulfillment of the obligations due for credit contracts. This moratorium was initially in force until 30 September 2020 and was extended by the Resolution of the Council of Ministers 41/2020, of 6 June, that approved the Economic and Social Stabilization Programme, until 31 March 2021.

The Resolution of the Council of Ministers 41/2020 also:

  • enlarges the beneficiaries of the measure, including emigrants;
  • contemplates new eligibility factors related with loss of income, covering a larger number of people with temporary restrictions of liquidity;
  • extends the moratorium to all contracts of mortgage credit, and to consumption credit for education;
  • includes natural persons who benefited from privates moratoriums and who, as a result of the changes, become eligible for the public moratorium.

Updates

The following updates to this measure have been made after it came into effect.

01 January 2021

Decree-Law 107/2020 of 31 December makes the fifth amendment to Decree-Law 10 -J / 2020, of 26 March, amended by Law 8/2020, of 10 April, by Decree-Law 26/2020, of 16 June, by Law 27 -A / 2020, of 24 July, and by Decree-Law 78 -A / 2020, of 29 September, which establishes exceptional measures to protect the credits of families, companies, private institutions of social solidarity and other entities of the social economy, as well as a special regime of personal guarantees of the State, within the scope of the COVID-19 disease pandemic.

This decree-law comes into force on 1 January 2021 and is effective until 30 September 2021.

02 October 2020

The Decree-Law 78-A/2020, of 29 September, amends the Decree-Law 10-J/2020, of 26 March, notably in what concerns banking moratoriums. The exceptional measures to protect the credits of families, businesses and social economy organisations are extended for an additional period of six months, until 30 September 2021.

Article 3 of the Decree-Law 78-A/2020 establishes in particular that profit distribution, in any form, the reimbourserment of credits to the partners and the acquisition of shares or own quotas, by the beneficiary organisations, leads to the cessation of the foreseen exceptional measures.

Use of measure

Information not available.

Target groups

Workers Businesses Citizens
Does not apply to workers Solo-self-employed
Other businesses
Applies to all citizens

Actors and funding

Actors Funding
National government
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

Not applicable.

Views and reactions

Not applicable.

Sources

  • 26 March 2020: Decreto-lei 10-J-2020 (dre.pt)
  • 06 June 2020: Resolução do Conselho de Ministros 41-2020 (dre.pt)
  • 29 September 2020: Decreto-Lei n.º 78-A/2020 (data.dre.pt)
  • 31 December 2020: Decreto-Lei n.º 107/2020 (dre.pt)

Citation

Eurofound (2020), Banking moratoriums, case PT-2020-13/990 (measures in Portugal), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.