Interest rates for tourism investments  slashed by half

Interest rates on government loans for small and medium-sized companies operating in the tourism sector have been slashed from three per cent to one and a half per cent.

The financial sweeteners are available for companies in the restaurant and tourism sectors and related businesses providing their social capital and headquarters are registered on mainland Portugal.

The time limit to apply for the loans is six months from February 1.

Loans are being offered to companies with viable business plans experiencing problems getting credit from banks at reasonable rates for a reasonable length of time, and also involves companies already subscribed in PME Investe I, II and III through agreements involving banks and the government.

It forms part of the government’s PME Investe I, II and III scheme to help smaller companies through the current crisis.

The reduction, which accompanies the fall in Euribor rates, aims to ease the financing of companies operating in the tourism sector following government approved support measures.

A total of 1.7 billion euros has been made available distributed in two specific lines and two general lines.

PME Investe II and catering trade (50 million euros) to modernise restaurants, clubs, bars and 750 million euros for general catering supply and other companies involved in the sector.

PME Investe III aimed at tourism developments (hotel and guest house modernisation, expansion and refurbishment) and activities (500 million euros) and 400 million for micro and small companies.

Further information in Portuguese on how to find out which companies qualify is available from www.turismodeportugal.pt and www.iapmei.pt