The government approves the protection of families with loans from a bank moratorium

“The decree-law aimed at protecting families with loans in the context of a banking moratorium was approved with additional protection in accordance with the Action Plan for the Prevention of Risk of Non-Compliance (PARI) and in accordance with the Non-Judicial Non-Compliance Procedure (PERSI)”, – said in a communique published at the end of the meeting of the Council of Ministers.

Thus, by August 31, financial institutions “must assess the financial capabilities of their clients,” and by September 15, if the legal requirements are met, “they must submit proposals to improve their contractual terms,” ​​he clarifies.

The government explains that in the event of financial difficulties, families with mortgages are protected for at least 90 days, “financial institutions cannot terminate the contract or sue.”

Financial institutions may also not raise the interest rate on loan contracts, even if they are not subject to a moratorium, as part of agreements signed in the context of PARI and PERSI, thereby increasing the protection of the bank’s customers.

The executive branch intends to ensure that “institutions are more proactive in monitoring their clients and that Banco de Portugal has the tools to oversee these steps.”

Most of the moratoriums were due to end in September due to concerns over how families and companies would react to loan commitments in a still very difficult economic situation.

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