The company still doesn’t know what support it can get after September. The government seeks a solution.
The biggest concern in the financial system is on loans to companies, especially those most affected by the pandemic. At the end of March, about one-third of the company’s credit owed. In the accommodation and catering industry, this problem is even more serious because nearly 60% of the industry’s credit has been suspended for its earnings.
With the end of this support plan in September, and as the European Banking Authority (EBA) postponed further deadlines, several voices from different fields called for a solution to mitigate the potential impact on thousands of companies The company’s tsunami. The Minister of Economy has stated in Parliament this week that the state will be able to provide some guarantees to allow extension of the repayment period. Pedro Siza Vieira (Pedro Siza Vieira) explained that the goal is to “allow a certain grace period so that the company does not focus its cash flow on repaying debt.” But the minister did not provide detailed information about the solution being negotiated.
Entrepreneurs have been waiting for months to seek concrete signs of possible support. In response to Siza Vieira’s announcement, the Association of Hotels, Restaurants and Similar of Portugal (AHRESP) recalled: “Provide a capitalization mechanism and an urgent review of long-term amortization plans (at least for 10 years) to ensure that the company’s obligations are fulfilled and mitigated The value of the installment payments to be repaid. The association, which represents one of the most affected sectors, still stressed in a statement that it “looks forward to further clarification of these two measures.”
Experts contacted by Dinheiro Vivo suggested that the company encountered greater difficulties in preparing to negotiate with banks to extend the contract period or establish a grace period. João Calado, coordinator of the Office of Consumer Debt Guidance (GOEC) and ISEG professor, believes that it is also important to “evaluate the use of alternative financing sources and consider reducing operating expenses within the limits.” .
Although it is believed that similar to housing loans, many companies that benefit from the moratorium do not need to continue operating under the same system. IMF economist Filipe Garcia warned that several entrepreneurs will be powerless” Respect them”. Debt service. “He exclaimed: “The termination of the ban on the company is likely to cause a wave of bankruptcy in the failure of the pandemic. I am worried that the company concerned is almost powerless. As for banking, he warned that it may be beneficial to prepare a basis for negotiations with the company to avoid further bankruptcies and layoffs.
As for the types of solutions that can mitigate the impact of this situation, economists believe that for companies, because it is possible to identify and quantify the impact of the pandemic and its possible viability, “rapid debt restructuring without the need for special Procedures, such as Special Rehabilitation Procedure (PER) or bankruptcy”.