News Amendment to Exceptional Credit Protection Measures 18/06/2020

Decree-Law No. 26/2020 of 16 June changed the exceptional measures to protect the credits of families, companies, private institutions of social solidarity and other entities of the social economy, thus updating the regime established in Decree- Law No. 10-J/2020, of 26 March.

The main guidelines for this update are as follows:

• Extension of the moratorium term: the moratorium term is broadly extended until March 31, 2021.

Beneficiary entities that have already joined are automatically covered by the additional period, except when they communicate their opposition until September 20, 2020. Families, companies, and other beneficiary entities that have not yet joined the moratorium, but intend to do so, must communicate their intention to the institutions by June 30, 2020.

Expansion of the universe of potential beneficiaries:

• The moratorium will also apply to citizens who do not have a residence in Portugal, thus covering immigrant citizens. Factors in income shortfalls can also refer to any of the borrower's household members. A new eligibility factor has been established associated with the proven drop in the household's overall income of at least 20% as a result of the pandemic.
• Extends the moratorium to all contracts (i) mortgage credit (including leasing of real estate for housing) and (ii) consumer credit for education purposes (including academic and professional training).