Banking moratoriums extended until the end of September 2021

Families and companies will have another six months to settle the credit to banks, with the extension of the banking moratoriums in force until the end of September 2021, the Government confirmed this Thursday after meeting with the Council of Ministers.

According to the Minister of Economy, Pedro Siza Vieira, the extension of the moratoriums covers individuals and companies in the repayment of the debt capital. On the other hand, individuals and companies and entities from some sectors – culture, tourism, social sector and commerce and automobile repair – may also postpone the payment of interest.

There is also more time to pay the principal and interest on the debt, with companies in the sectors considered most affected taking another year to do so. “On the one hand, the moratorium covers not only capital repayment obligations, but also interest payment obligations, until September 30. And finally, also, we add an additional 12 months to the remaining payment term of previously taken loans ”, explained the Minister of Economy.

What does this mean? “Imagine that at the time the moratorium came into effect, a company had a loan in which it still had two years to pay it off. It means that until September 30, you do not have to pay capital or interest. As of September 30, you have to start paying, but instead of doing it in the two years you have hired, you can do it in three years, ”exemplified the government official.

The possibility of enjoying the postponement comes with the condition that the companies do not distribute dividends or acquire equity, and it will be automatic for companies that are accessing other liquidity support measures: “the beneficiary entities that, on October 1, 2020 , if they are covered by any of the extraordinary liquidity support measures, they benefit from the additional and automatic extension of these measures for a period of six months, between March 31, 2021 and September 30, 2021 “, says today’s statement. of the Council of Ministers.

These changes have no effect on consumer credit for individuals, where changes are no longer expected, and Pedro Siza Vieira reported that the government is still available to adjust the necessary measures.

According to the balance sheet made by the Minister of Economy, the additional six months represent a temporary break of about seven billion euros for companies and families. “The capital and interest obligations that are suspended until March of next year represent around ten billion euros. The extension of the moratorium is about seven billion euros more than companies and individuals will not have to do during the term of this extension ”.

Updated at 1:51 p.m.