Background information

Given the current scenario and what is expected in the near future, namely in terms of progressive deconfinement, the Government believes it is necessary to adopt additional measures to strengthen the solvency of viable companies that are suffering a significant drop in turnover due to the extended duration of the reduction of activity in certain sectors most affected by the pandemic.

The Decree-Law 63/2021 of 28 July creates the Companies Capitalisation Fund. This has multiple aims:

• to protect the productive fabric until a level of vaccination is possible that allows the recovery of confidence and economic activity in all sectors that still feel restrictions;
• to avoid a structural negative impact that disrupts the recovery of the Portuguese economy;
• and to protect employment in the sectors most affected by the pandemic.

This decree-law was rectified by the Declaration of Rectification 28/2021 of 25 August.

Content of measure

This decree-law creates the commercial companies capitalisation fund, the purpose of which is, inter alia, to strengthen and restore the solvency of companies (mostly small and medium-sized enterprises) that are viable in the medium and long term, but whose balance sheets and markets have been affected by the effects of the COVID-19 pandemic.

It approves an amendment to Decree-Law 10-J/2020 of 26 March, in its current wording, which now allows the object of the Mutual Counter-guarantee Fund to include, also on an exceptional and temporary basis, to deal with the economic impacts resulting from the COVID-19 pandemic, the provision of guarantees for companies as beneficiaries, including for supporting, until 31 December 2021, restructuring or refinancing processes of credit operations previously contracted, provided there is recognition by the managing company Banco Português de Fomento, S. A. (BPF, of its relevant interest in supporting the economic and financial recovery of these companies.

The purpose of the Fund is to:

• Provide temporary public support to strengthen the solvency of commercial companies operating on national territory that have been affected by the impact of the COVID-19 pandemic;
• Support the reinforcement of capital of commercial companies in the initial phase of activity or in the process of growth and consolidation.

The Fund has an initial endowment of €320 million, through IAPMEI, I.P., with funds from loans granted to it by the Portuguese state under the Recovery and Resilience Plan, without prejudice to additional allocations made possible by other sources of European funds.

The Fund shall be wound up after 10 years, without prejudice to the possibility of extension of its duration for consecutive periods of five years, up to a maximum total of 10 years, by decision of the members of the government responsible for the areas of economy and finance, following a proposal by the management company.

Use of measure

Information not yet available.

Target groups

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

Actors and funding

Actors	Funding
National government Company / Companies	European Funds National Recovery and Resilience Facility

Social partners

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

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

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

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were consulted at the Standing Committee for Social Concertation.

Views and reactions

Social partners' views are not known.

Sources

• 28 July 2021: Decreto-Lei n.º 63/2021 (dre.pt)
• 25 August 2021: Declaração de Retificação n.º 28/2021 (data.dre.pt)