The amount payable by each beneficiary has increased from the limit of 120,000 Euros to 270,000 Euros.
According to a decree issued today, the government has increased the fisheries support credit line of 20 million euros and increased the total funding for each beneficiary to 270,000 euros.
The organization was established a year ago, initially allocated funds of 20 million euros, each beneficiary has a total limit of 120,000 euros, and the credit line for subsidies to fishermen has been exhausted.
In Decree No. 90/2021 issued by the government today by Diárioda República, the government justified the strengthening now, that is, “companies in the fishery sector, producer organizations, fishermen’s associations and the transformation of the fishery industry are still continuing.[re]The economic situation caused by the pandemic is facing cash flow difficulties.”
On the other hand, he mentioned that the latest changes to the interim framework for national support measures approved by the European Commission “foresee an increase in the maximum amount of assistance that companies active in the fisheries and aquaculture sector will provide to the fisheries and aquaculture sector. Every time. Each beneficiary paid a total of 270,000 euros and extended the signing period of the loan contract to December 31, 2021”.
The line of credit is designed to provide financial means for obtaining factors of production, working capital, or treasury, that is, tax settlement, salary payment and debt renegotiation credit with suppliers, credit institutions or other legally authorized entities.
The diploma is effective from Saturday and is applicable to natural or legal persons engaged in effective activities and legally qualified to engage in fisheries, aquaculture, processing industry and the sale of fishery products, or fishermen’s associations or recognized producer organizations.
The decree requires these operators to have a registered office on the national territory, standardize their contributions before tax administration and social security, and at least before the outbreak of covid-19, the company cannot become a company in difficulty.
In the fisheries and aquaculture sector, assistance will be provided “cumulatively with any other minimum assistance”, and the allocation of credit to each beneficiary is “in the order of application until” an increase of EUR 20 million is reached
As for the financial status of the loan, the decree stipulates that “the term of the loan shall be up to six years from the date of conclusion of the contract”, and the term shall be signed with the credit institution and the beneficiary until December 31.
The loan must be used within a maximum of 12 months from the date of conclusion of the contract, and each contract can be used up to 3 times, and the loan should be due at the contract interest rate, calculated on the basis of outstanding capital every day, and paid annually.
According to the terms of the diploma, the interest rate subsidy will vary according to the company’s turnover: for companies with a turnover of no more than 500,000 euros, a bonus of no more than 100% will be received. If billed in the following way, the upper limit is 90 %: higher amount.
These percentages will be applied to the reference interest rate for the subsidy calculation in effect at the beginning of each interest rate calculation period, unless the institution implements a lower interest rate, “in this case, the reference interest rate will become like this.”
The sales scope of the change in interest rate subsidy depends on the average turnover of the last two fiscal years, or if the company started operations less than two years ago, it depends on the last fiscal year.