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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case PT-2020-45/1720 – measures in Portugal

Measures to support businesses cash-flow

Um novo conjunto de medidas de suporte à tesouraria das empresas

Country Portugal , applies nationwide
Time period Open ended, started on 05 November 2020
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Heloisa Perista and Maria da Paz Campos Lima (CESIS) and Eurofound
Case created 17 January 2021 (updated 20 January 2021)

Background information

The evolution of the pandemic and the social and economic circumstances impose a reinforcement of the instruments to support businesses cash flow, in particular in micro and small companies in the sectors most affected by the restrictive exceptional measures, strongly exporting industrial companies, and companies providing goods and services to cultural, festive, sportive or corporative events. A new set of support measures is approved by the Council of Ministers by the Resolution of Council of Ministers 101/2020.

Content of measure

The Council of Ministers determines to approve the launching, operationalisation and monitoring of:

  1. A cash flow support, to take the form of a non-repayable grant for immediate support, addressed to micro and small companies operating in the sectors mostly affected by the exceptional measures approved in the context of COVID-19, in the global amount of €750,000,000.
  2. A credit line addressed to strongly exporting industrial companies, irrespective of their dimension, that have a high percentage of turnover related to the export of goods, in the global amount of €750,000,000. 20% of the credit granted may be converted into a non-repayable grant in case of maintenance of jobs.
  3. A credit line addressed to micro, small and medium companies and Mid-Cap mostly operating in the provision of goods and services to cultural, festive, sportive or corporative events, in the global amount of €50,000,000. 20% of the credit granted may be converted into a non-repayable grant in case of maintenance of jobs.

The costs corresponding to these measures will be supported by European funds. These supports are cumulative with other existing measures.

Eligibility conditions:

the companies should have a positive net worth on 31 December 2019; may not distribute funds to the partners; *may not do collective dismissals or terminate jobs by economic reasons.

Use of measure

Unknown.

Target groups

Workers Businesses Citizens
Does not apply to workers SMEs
Does not apply to citizens

Actors and funding

Actors Funding
National government
European Funds

Social partners

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

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: Unknown

Involvement

Unknown.

Views and reactions

Unknown.

Sources

  • 20 November 2020: Resolução do Conselho de Ministros nº 101/2020 (dre.pt)

Citation

Eurofound (2021), Measures to support businesses cash-flow, case PT-2020-45/1720 (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.