Prime Minister Luis Montenegro has unveiled a 2.5-billion-euro (US$2.95 billion) extraordinary support package and other measures as central Portugal reels in the wake of Storm Kristin, reports the Portuguese business newspaper Jornal de Negócios.
Storm Kristin struck central Portugal early last Wednesday, with heavy rains and wind gusts topping 124 kph tearing through homes, factories and infrastructure, uprooting trees and leaving hundreds of thousands of households without power. At least six people died.
On Sunday, the Portuguese government approved a package of loans and incentives to help people and businesses rebuild. A 500-million-euro ($589.63 million) credit line has been launched to assist with immediate cash-flow needs, while a 1-billion-euro (US$1.18 billion) loan programme will help rebuild uninsured factories damaged by the storm.
The remaining 1 billion euros (US$1.18 billion) in aid will go toward helping people rebuild uninsured owner-occupied homes – up to 10,000 euros (US$11,793) per house – and social security subsidies for individuals facing hardship or income loss – up 537 euros (US$633) per person per month, or 1,075 euros (US$1,268) per family.
All reconstruction projects, Montengero noted at the Sunday press conference, will be exempt from licensing and prior urban planning, environmental and administrative approvals. “We are in an exceptional situation.”
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A raft of other measures seeks to reduce financial burdens on people and businesses in the short term, including a 90-day moratorium on mortgages and business loans, as well as a special regime for tax obligations for businesses in the affected regions, postponing payment until 31 March. Those companies will also have a special social security contribution for the next six months and a simplified furlough scheme for the next three.
The Council of Ministers has also elected to transfer money from the state budget to address pressing needs.
State-owned infrastructure company IP will receive 400 million euros (US$471.7 million) for the most urgent interventions on railway and road lines, while 200 million euros (US$235.85 million) will go to the CCDRs to support recovery of vital infrastructure like schools. Another 20 million euros (US$23.58 million) will be set aside for recovery of cultural heritage.
The announcement also included an extension of the state of calamity – the country’s highest civil protection alert for major disasters – for 69 municipalities until 8 February. More heavy rain and flooding is expected, although winds should be less severe.
