By Andrea Hargraves 
“A Decree-Law was approved aimed at protecting families with credits in a bank moratorium, benefiting from the additional protection under the Action Plan for Risk of Default (PARI) and under the Extrajudicial Procedure for Settlement of Non-Compliance Cases (PERSI),” notes the statement issued at the conclusion of Cabinet meeting held today.
Accordingly, until August 31, financial institutions have to “assess the financial capacity of their customers,” and until September 15, if legal requirements are met, “they have to submit proposals to improve their contractual terms,” he said.
The government explains that in the event of financial difficulties, families with mortgages are protected for a minimum period of 90 days, “financial institutions cannot terminate the contract or take legal action.”
Financial institutions may also not increase the interest rate on credit contracts, even if they are not covered by a temporary moratorium, within the scope of the agreements signed in the context of PARI and PERSI, thus strengthening the protection of bank customers.
The executive intends to ensure that “institutions monitor their customers in a more proactive manner and that Banco de Portugal has the tools to oversee these steps.”
Most of the deferrals were due to end in September, with concerns about how families and businesses would respond to the obligation of having to repay loans in an extremely difficult economic situation.
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