However, the expansion only applies to sectors most affected by the pandemic, such as restaurants and accommodation.
The delegates approved the change of PSD in the professional proposal today and added PS to the PCP project, extending the suspension period to the end of the year, in the part of capital repayment.
However, the extension of the system only applies to individuals and companies that carry out activities in sectors particularly affected by the covid-19 pandemic as specified in the Annex to Decree No. 10-J/2020 of March 26. According to the current wording, For example, departments such as accommodation, catering, culture and transportation.”
The Budget and Finance Committee approved the proposed amendments to the PSD, CDS, Liberty Initiative, Left-wing Group, PCP and PAN voted in favor, and PS., Afonso Oliveira abstained.
In accordance with the proposed amendments and additions to the PSD in Act No. 717/XIV/2 of the PCP, the Social Democratic Party proposes to suspend the “extra extension” of the bank “from October 1, 2021 to December 31, 2021″ specifically for the suspension of capital repayment” .
According to the terms of the proposal approved today, “analogous to the system that has been effective for other companies since April 1, this extension should specifically cover the suspension of capital repayment.”
When revealing the cause, PSD recalled that “at the end of next September, most of the credit defaults benefiting thousands of companies and individuals will end” after the COVID-19 pandemic caused an economic and social crisis.
“Although the situation of the covid-19 pandemic has improved in recent months, the country’s economic and social situation is far from stable, and there are concerns that the end of the support measures being implemented will have a negative impact on businesses and households. Granted”, maintained Seats in the Social Democratic Party.
“Therefore-he added-the approach of that date requires a timely decision to provide the necessary predictability on the one hand, and on the other hand to allow a phased withdrawal from the credit suspension system.”
“The Socialist parliamentary group believes that the extension of the public bank suspension can only be carried out in the context of the European prudential framework and in accordance with the EBA guidelines. In this sense, the law aims to open up the possibility of public bank suspension. Socialists say that if The EBA guidelines allow it to be extended”.
On March 31, the parliament approved the PCP’s Act No. 717/XIV/2 as a whole. Only when the PS voted against it, the “extension and extension of the bank suspension” was extended for another six months, with the grace period in the first Half of 2021.
The PCP proposes to “extend the current system to all companies that have benefited from the suspension but are not covered by CAE [código de atividade económico] The annex to Decree No. 10-J/2020 of March 26 defines it in its current wording because the deterioration of the economic situation has penetrated almost all sectors of the Portuguese business structure”.
These banks have implemented payment moratoriums for a year to help families and businesses in crisis caused by the covid-19 pandemic.