Support for businesses and families affected by Storm Kristin “worth” €2.5 billion

Following the extraordinary Council of Ministers meeting held on Sunday morning, Prime Minister Luís Montenegro announced a package of support measures for reconstruction, business cash flow and household income, including moratoriums on credit and tax obligations and funds for public infrastructure and cultural heritage, totalling an estimated €2.5 billion, with the aim of responding to the consequences of the Kristin depression.

The measures include direct support of up to €10,000 for permanent homes and for agricultural and forestry operations where there is no insurance; temporary exemption from contributions for affected companies; simplified layoffs; and two lines of credit for companies totalling €1.5 billion. A task force was also set up in Leiria, the region most affected by the storm, to speed up the coordination of the recovery. See here for all the measures announced by Luís Montenegro.

Direct support for reconstruction

• Own and permanent housing: support for interventions up to €10,000, accessible to all citizens and families, without the need for documentation, in cases where there is no applicable insurance coverage. The procedure is accompanied by an inspection by the Regional Coordination and Development Commissions (CCDR) and municipal councils.
• Agriculture and forestry: support under equivalent conditions, up to €10,000, with the same monitoring procedure.

Social security and social support

• Financial support for families in need or who have lost income: up to €537 per person or €10,075 per household.
• Financial support for private social solidarity institutions (IPSS) and similar entities to promote social support work, with no amount announced.
• Exemption from social security contributions for companies affected in the affected areas for six months.
• Simplified lay-off scheme for three months.

Credit and liquidity for families and businesses

• 90-day moratorium on business loans and mortgage loans for the purchase of permanent homes, with suspension of payments during this period.
• After 90 days, the Government indicates that it will consider the possibility of an additional moratorium of up to 12 months, to accommodate the normalisation of the recovery of businesses and families.
• Credit line for the cash flow of businesses and other legal entities, including associations, in the amount of 500 million euros. The Government estimates availability within a week.
• Credit line for the recovery of business structures not covered by insurance, with €1 billion available. Estimated availability in about three weeks.

Taxation

• Tax moratorium until 31 March: tax obligations from 28 January to 31 March are postponed to April for taxpayers and accountants.

Insurance and acceleration of processes

• Meeting between the Minister of Economy and Territorial Cohesion and insurance companies: Commitment to conditions so that 80% of the inspections or expert assessments necessary to activate insurance take place within the next 15 days.
• In many situations, photographic evidence may be sufficient to proceed with minor repairs and prevent further damage.

Administrative simplification in reconstruction

• Exemption from licensing and prior control for public and private reconstruction works, including urban, environmental and administrative dimensions, invoking an exceptional regime to speed up recovery.

Public funds for infrastructure and heritage

• Transfer of €400 million to IP – Infraestruturas de Portugal, for the urgent recovery of rail and road infrastructure.
• Transfer of €200 million to the Regional Coordination and Development Commissions (CCDR) to finance local authorities in the recovery of public facilities and infrastructure, including schools that are not fully operational.
• Transfer of €20 million for urgent restoration of cultural heritage.

On-the-ground coordination and implementation capacity

• Creation of a task force for the recovery of the affected areas, operating in Leiria, to coordinate public entities from various ministries, local authorities, CCDR, social associations and companies. Leadership has been assigned to Paulo Fernandes, former mayor of Fundão, who will take up his duties this Monday.
• Meeting this Monday in Leiria with the Association of Construction Industrialists to organise urgent interventions, focusing on roofing and roofs.