Government creates short-term certificates for SME

António Costa says he will implement two support measures for the capitalization of businesses, within the programme ‘Capitalizar’ (‘Capitalize’). In a speech in Euronext’s Conference Via Bolsa, the prime minister said it is essential to find new ways to finance businesses.

“In the short term, we are going to take on two initiatives to reinforce industry incentives. The first is the creation of short-term certificates to finance small and medium-sized enterprises (SME), which are instruments of short-term debt eligible for both harmonized and pensions funds. The second initiative intends to create the portrait of companies that promote economic development”, corporations that can invest in the capital SME have to offer, says the prime minister.
“It is imperative to find new ways to finance companies. Even though it is the ECB who advocates for small interest rates, companies still have difficulties with gaining access to credit, compared to their international competitors”. This was one of the strong ideias the prime minister advocated for.

António Costa highlighted that the government’s programme is based on six main pillars aiming to structurally change the economy’s long term strategy. “One of which is to capitalize companies (…) it is essential to identify solutions that allow for improvements in the process of financing businesses and solving their compliance problems”, the prime minister explained.

In the draft for the 2017 State Budget, some measures have already been identified. The preliminary version of the document augments to 7% the discount on taxable income and broadens tax concession to more companies, on their incorporation or on capital increases. SME that set up in the hinterland regions of Portugal will also have tax concessions. Additionally, investing more than ten thousand euros on a small or micro company grants a discount on the Personal Income Tax (IRS).