The Portuguese Government has approved a moratorium, until 30 September 2020, which ensures the continuity of contracted credit facilities and the extension or suspension of credits until the end of this period, covering companies that meet the criteria set forth in Decree-Law no. 10-J/2020, of 26 March (the “Government Moratorium”).
The Government Moratorium includes a range of measures to protect and support liquidity and cash flow, with the purpose of deferring performance of obligations by beneficiaries to financial entities.
Santander allows companies to choose between two alternatives:
In either options, the contractual payment schedule will be automatically extended for an identical period to that of the suspension, in order to ensure that there are no further charges other than those which might result from the variability of the loan reference interest rate, with all the elements related to the contracts covered by the measure being extended as well, including security.
Additionally, the credit facilities entered into with Santander that have a maturity date corresponding to a date prior to 30 September will be automatically extended until that date.
(a) Credit or financing for purchasing securities, or the acquisition of stakes in other financial instruments, whether or not secured by those instruments;
(b) Credit granted to beneficiaries of schemes, subsidies or benefits, in particular tax-based, related to moving their head offices to Portugal, including investment activities;
(c) Credit granted to companies for individual use, through credit cards of the members of the management or supervisory bodies, employees or other staff.
(a) Their business is carried out, and their head office is located, in Portugal;
(b) They are classified as micro, small and medium-sized enterprises according to the European Commission Recommendation 2003/361/EC, of 6 May 2003, as well as other companies which, on 26 March 2020, irrespective of their size, meet the conditions referred to in paragraphs (a), (c) and (d), except for those which are part of the financial sector;
(c) They are not in arrears or default regarding Santander as at 18 March 2020, nor meet the materiality requirement, and are not insolvent or under a payment suspension or termination situation, nor are under payment collection procedure requested by any financial entity;
(d) They are not in arrears with payments to the Tax and Custom Authorities and the Social Security, respectively, within the meaning of the Código de Procedimento e de Processo Tributário [Code of Tax Procedure and Proceedings] and the Código dos Regimes Contributivos do Sistema Previdencial de Segurança Social [Code of Contributory Regimes of the Social Security Welfare System]; for this purpose, until 30 April 2020, no debt created during March 2020 is relevant;
(e) All other companies will also benefit from the measures provided for under this Decree-Law, irrespective of their size, except for financial-sector entities, and provided that they comply with the applicable general conditions;
When can I apply for the Moratorium?
You can apply for the Moratorium for as long as it remains in force (until 30 September 2020).
Steps to apply