The government is discussing the extension of the credit default with the coronavirus banks

Economy Minister Pedro Siza Vieira this Tuesday admitted extending the loan default or other solutions to support the payment of these loans. “We are discussing what to do about the existing debt in this sector and an extension of the maturities in this sector may be justified,” said the minister in a webinar on “The state of tourism”.

The minister admitted that he was discussing the moratoria issue with the Banco de Portugal (BdP) and the Portuguese Bankers Association (APB). On the table could “even be an extension of the remaining debt,” he said. And he added, “It is something that we need to see, to what extent it is justified and to what extent”.

Siza Vieira admitted that corporate reserves were “exhausted” and said the government was “aware that it needs to put in place capitalization tools for companies”. “We need to make extra efforts on the public and private sides to endure more these months,” he added.