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Moratorium: tourism, culture, automobile and social sector with special conditions | Covid-19

The government has decided to extend the moratoriums it approved last March to help companies strengthen liquidity, but the decree approved Thursday by the Council of Ministers now differentiates support by sector of activity. Thus, companies in sectors such as tourism, culture, social sector and trade and repair of automobiles, will benefit from specific rules, more advantageous, in the sense of the government, to help those who are most severely affected in the your income.

It will be necessary to wait for the decree to confirm in detail which are the sectors which, according to the Minister of Economy Pedro Siza Vieira, are the “most affected” by the crisis which arose after the confinement in the second quarter of this year. Certainly sectors not included will see the moratorium on capital extended until September 30, but the obligation to pay interest will resume from April 1.

According to the same official, all companies that have adhered to the moratorium approved in March 2020 by decree 10-J / 2020 will automatically benefit from a six-month extension. With one difference: this moratorium provided for the payment of capital and interest until March 31, but the extension approved today for most companies only applies to the capital component. This means that the obligation to pay principal on loans taken out with the bank will continue to be suspended until September 30, 2021, but that on April 1, the obligation to pay interest will resume.

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However, for some sectors, such as those already mentioned, the government fixes the suspension of interest payments until September 30. And, as the Minister noted, it will also extend the period of payment of the remaining capital by an additional 12 months. This means that if a company had two years to repay capital to the bank, it now has three years to do so, provided it is operating in one of those industries which the government says “have experienced very significant interruptions in their activity and continue to have “.

“The pace of economic growth, after the second quarter, is very uncertain, there are uncertainties on the behavior of the market”, justifies Siza Vieira. “The message we are sending is that businesses, instead of resuming debt service in March 2021, can expect more time. It is a message of tranquility, for some particularly affected sectors, such as accommodation, tourist transport, cultural and social activity, which have suffered a much more drastic and continuous impact and from this point of view also benefit two measures, ”he declared, at the end of the Council of Ministers meeting.

He also warned that there was another condition for the maintenance of these moratoriums, valid for all companies: there can be no distribution of dividends or profits, nor other financial operations for the benefit of the owners of the companies. . The government statement is, in this regard, clear, prohibiting “the distribution of profits, in any form whatsoever, the repayment of loans to partners and the acquisition of own shares or quotas, by the beneficiary entities”. If any of these situations occur, “the cessation of the effects of the extraordinary liquidity support measures” is determined.

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