Portugal to reactivate economy with Eurogroup aid package: official

LISBON (XINHUA) – The Portuguese government will reactivate national economy with the Eurogroup’s around half a trillion euro-financial aid package, a government official pledged on Friday.

In an interview with TSF, one of the main Portuguese radio stations, Portuguese Secretary of State for Finance Ricardo Mourinho Felix said that Portugal will make money available and will not use it as an excuse to curb public spending.

He stressed that the financial aid package, which aims to combat the economic impacts of the coronavirus pandemic in Europe, will not imply austerity measures for Portugal.

The package provides credit line, increase in the European Investment Bank’s lending capacity, a new unemployment insurance regime and the creation of a post-crisis economic recovery fund, said the official.

The objective of the measures approved on Thursday “is to give member states the possibility to support, increase spending, reduce and postpone tax collection so that people and businesses can live better and have the means to sustain their lives that have already been sufficiently affected,” he said.

“What came to be the final result of Portuguese public accounts will be ‘accommodated’ in the rules of European rules and in the markets perception,” he added.

The Portuguese Government already published laws establishing lines of credit and financial support between EUR50,000 and EUR2 million for each company in accordance with its size.

The available financing can be requested by both large and micro-entrepreneurs, while the capital can be paid in up to six years, with a grace period of up to 18 months.

Portuguese business activities have been affected by the state of emergency due to the COVID-19 pandemic.

Social restrictions have been in effect since March 18 and make it impossible for the economy and consumption to run normally.