The Government will make available a line of credit for forestry companies affected by Storm Kristin, with the aim of accelerating the removal of timber and supporting the recovery of the most affected areas.

This measure is the result of a collaboration between the Ministry of Economy and Territorial Cohesion, the Ministry of Agriculture and Sea, and the Portuguese Development Bank (BPF), guaranteeing financial support to companies to respond to the consequences left by the storm.

The main objective is to strengthen the liquidity of companies, helping them to meet immediate cash needs and maintain the work of cleaning and removing fallen trees in the affected areas.

With national coverage, this line of credit aims to ensure that economic operators throughout the country can quickly and effectively access financing for the acquisition and removal of timber, regardless of the location of their operations.

Financial support may reach €2.5 million per company, through competitive conditions framed within the public guarantee model of the Portuguese Development Bank, allowing for a more tailored response to the sector´s needs.

The initiative reinforces cooperation between the government areas of economy and agriculture, in a strategy that seeks to promote the recovery of the forestry sector, increase its resilience, and strengthen fire prevention.

The Minister of Economy and Territorial Cohesion, Castro Almeida, highlighted the urgency of the intervention, stating that, with the approach of the fire season, it is essential to quickly remove fallen trees and clear the land to prevent the affected territories from being further penalized.

The Minister of Agriculture and Sea, José Manuel Fernandes, emphasized that this measure represents another step in the government´s commitment to the recovery, enhancement, and sustainability of the forestry sector, also reinforcing the capacity for fire prevention and control of risks associated with plant health.

With this initiative, the Government intends to continue providing concrete support instruments to companies, promoting an effective response to the impacts of Storm Kristin and contributing to a more sustainable management of the national territory.

Source text: Press release from the Portuguese Republic
Source image: Antonio Pedro Santos | LUSA
Legislação e Finanças