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Portugal has no money to pay business aid

Portugal, which is placed in containment since about 7 days for a minimum duration of 1 month. At the time of the announcement by the government of the implementation of the containment, the Minister of the Economy announced that various measures were put in place to support the companies which had to close following the containment except that the coffers of the state are empty.

Portugal has no money to pay business aid

The Portuguese Confederation of Enterprises (CIP) argued on Thursday that the country does not have the financial capacity to compensate businesses for losses due to containment.

Rafael Campos Pereira, vice-president of the CIP, admits that in the current situation of the pandemic, measures are needed to reduce the risk of contagion. In this sense, the CIP advocates the adoption of a "more rational" and not "extreme" containment, as well as the increase of screening, vaccination and isolation of positive cases.

Still according to Rafael Campos Pereira, it is difficult to believe that public transport is not the origin of the 87% of contagions from which it is not known where they come from". The CIP also noted that since April they have proposed the adoption of measures of capitalization of the companies, as well as capital injections, suggestions that, according to the Confederation, have been taken into account only this month.

As such, the government announced today the creation of a line of credit in which 20 % of the amount borrowed can be converted into non-repayable grants for businesses." To the CIP, the terms of these loans appear "less favorable," although it notes that it is unclear whether there are any constraints on converting the amounts to grants.

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