Moratorium for Individuals and Businesses during "Kristin" storm

Decree-Law No. 31-B/2026, of February 5 (the “Decree-Law No. 31-B/2026”)

Learn about the exceptional and temporary government measures adopted to help families and businesses affected by Storm Kristin.

Decree-Law No. 31-B/2026 established exceptional measures to protect the credit of families, businesses, private social solidarity institutions and other entities in the social economy, entities holding agricultural and forestry holdings, entities holding property rights, use or administration of cultural heritage and other equivalent entities as better identified below.

The moratorium applies to credit operations contracted by clients affected by Storm Kristin, according to the geographical scope resulting from the updated list of municipalities at gov.pt.

The Decree enters into force on February 6th, and eligible beneficiaries may submit applications for membership from that date, with retroactive effect to January 28, 2026. 

Regardless of the date of adherence, the Moratorium is valid for 90 days, starting on January 28, 2026.

For more detailed information, please see below.

Decree-Law No. 31-B/2026: Scope, measures and operations covered:

Characteristics of Private Clients

Learn about the characteristics of the Moratorium applied to Individual Clients.
    • Holders of loans (mortgage loans or real estate financial leases) intended for permanent housing, covered by Decree-Law No. 74-A/2017, of June 23, relating to property located in municipalities covered by paragraphs 2 and 3 of Resolution of the Council of Ministers No. 15-B/2026 of January 30 and Resolution of the Council of Ministers 15-C/2026, of February 1; and/or, 
    • Individuals holding the aforementioned credit who are covered by the lay-off scheme in companies based in or operating within those municipalities, without prejudice to any applicable regulations.

    Provided that cumulatively:

    • They must not be, as of January 28, 2026, in arrears or default on monetary payments for more than 90 days with the institutions, or, if in arrears or default, they must not meet the materiality criterion set out in Bank of Portugal Notice No. 2/2019 and in Regulation (EU) 2018/1845 of the European Central Bank of 21 November 2018, and must not be in a situation of insolvency, or suspension or cessation of payments, or on that date already be subject to enforcement proceedings by any of the institutions;
    • By January 28, 2026, their situation must be regularized with the Tax and Customs Authority and Social Security, respectively, in accordance with Article 177-A of the Tax Procedure and Process Code, approved by Decree-Law No. 433/99 of October 26, and Article 208 of the Code of Contribution Regimes of the Social Security Pension System, approved as an annex to Law No. 110/2009 of September 16.

Operations excluded from the moratorium (Article 3, paragraph 2 of Decree-Law No. 31-B/2026):

  • Credit or financing for the purchase of transferable securities or the acquisition of positions in other financial instruments, whether or not they are guaranteed by those instruments;
  • Credit granted to beneficiaries of schemes, subsidies, or benefits, namely tax-related, for establishing their headquarters or tax residence in Portugal, including for investment activity, with the exception of citizens covered by the Return Program;
  • Credit granted to companies for individual use through credit cards by members of management, supervisory bodies, employees, or other employees.

Measures foreseen in the decree

The Decree provides for the following Measures (Article 4 of Decree-Law No. 31-B/2026):

  1. Extension, for a period equal to the term of this measure, of all loans with capital repayment at the end of the contract, in force as of January 28, 2026, together, under the same terms, with all their associated elements, including interest, guarantees, in particular those provided through insurance or credit instruments;
  2. Suspension, with respect to loans with partial repayment of principal OR with partial maturity of other monetary installments, during the period in which this measure is in force, i.e., until April 28, 2026, of the payment of principal, rents and interest due until the end of that period, with the contractual payment plan for installments of principal, rents, interest, commissions and other charges being automatically extended for a period identical to the suspension period, in order to ensure that there are no other charges beyond those that may arise from the variability of the reference interest rate underlying the contract, with all elements associated with the contracts covered by the measure also being extended, including guarantees;
  3. Suspension, only of the total reimbursement of capital, or part of the capital, during the period in which this measure is in force, i.e., until April 28, 2026, at the request, at any time, of the entities benefiting from the measures provided for in points 1 and 2 above.

These measures apply to eligible credit operations that are ongoing as of January 28, 2026.

Additional Measures (Article 12 of Decree-Law No. 31-B/2026):

Within 60 days from January 28, 2026, the Government will approve new exceptional measures to protect credit, to be in effect for a longer period. 

Formalization of the moratorium (article 5 of Decree-Law no. 31-B/2026):

The request should preferably be made electronically.

To expedite the application process for Clients, BBVA provides a template for a declaration of adherence to the Moratorium. For signature purposes: i) In the case of individuals and sole traders, it must be signed by all borrowers; and, ii) in the case of companies and private social solidarity institutions, as well as non-profit associations and other entities, it must be signed by their respective legal representatives.

The membership certificate can be obtained here.

Once the request to join the moratorium is received, BBVA verifies whether the conditions for legal eligibility are met and will communicate its decision after receiving the declaration of adherence and the supporting documentation proving the regularity of the respective tax and social security situation, or, with regard to the situation before the Tax Authority and Social Security, the declaration of the existence of a negotiation process for the regularization of the default or the request for regularization of the default situation (in accordance with Article 177-A of the Tax Procedure and Process Code and Article 208 of the Code of Contribution Regimes of the Social Security and Pension System), using the same means that the client used to formulate their request to join the legal moratorium.

DECISION DEADLINES:

BBVA will communicate its decision within the following timeframes:

  • 3 business days after receiving the declaration and documents if the Client does not meet the requirements;
  • 5 working days if the requirements are met, with the moratorium being applied with effect from January 28, 2026 (the supporting documentation of the aforementioned tax and social security situation must be sent together with the declaration of adherence);
  • The lack of response from BBVA within 5 working days will result in the direct application of support measures to the beneficiary entities.

Additional impacts resulting from the application of the moratorium (Article 4 of the Notice of Decree-Law No. 31-B/2026)

Between January 28, 2026 and April 28, 2026:

1. Prohibition on the total or partial revocation of contracted credit lines and granted loans, in the contracted amounts:
The total or partial revocation of existing credit lines and loans, in amounts contracted as of January 28, 2026, is prohibited until April 28, 2026. In this sense, any amounts already committed are guaranteed, whether or not they have been used.

2. Prohibition on charging commissions, expenses or other fees:
Under Decree-Law No. 31-B/2026, institutions are prohibited from charging fees, expenses or other charges, particularly with regard to the analysis and formalization of access to the moratorium.

3. The extension of the payment deadline for principal, rents, interest, commissions and other charges referred to in subparagraphs b) and c) of paragraph 1, in accordance with Article 4, paragraph 4 of Decree-Law No. 31-B/2026, does not give rise to any:

  • Contractual breach, including cross-default of contracts not covered by this regime;
  • Activation of early termination clauses;
  • Activation of clauses providing for monetary penalties;
  • Activation of control change clauses that allow institutions to control the assets of beneficiaries;
  • Suspension of interest payments due during the extension period, which are capitalized into the loan amount with reference to the time they are due at the rate of the contract in effect; and
  • Ineffectiveness or termination of guarantees granted by the beneficiary entities of the measures or by third parties, specifically the effectiveness and validity of insurance policies, guarantees and/or sureties.

For more information, contact your Manager.

Characteristics Clients Companies

Learn about the characteristics of the Moratorium applied to Corporate Clients.
    • Operations contracted by entities that have their headquarters or carry out their activity in the municipalities referred to in paragraphs 2 and 3 of Council of Ministers Resolution No. 15-B/2026, of January 30, and Council of Ministers Resolution No. 15-C/2026, of February 1, provided that, cumulatively:

    Let them be:

    i) Individuals or legal entities engaged in economic activity, including sole traders, micro, small and medium-sized enterprises in accordance with European Commission Recommendation 2003/361/EC of 6 May 2003, as well as cooperatives and associations of agricultural producers; or

    ii) Private social solidarity institutions and equivalent entities, as well as non-profit associations and other social economy entities, except those that meet the requirements set out in Article 136 of the Mutual Associations Code, approved as an annex to Decree-Law No. 59/2018, of August 2; or

    iii) Individuals or legal entities that own agricultural and forestry holdings, agricultural cooperatives, producer organizations, and legally recognized forestry or silvopastoral holding management entities, provided they own or manage the affected productive assets; or

    iv) Public or private entities holding property, use or management rights over natural, cultural or sporting assets affected by Storm Kristin and the hydrological phenomena that followed.

    b) They are not, as of January 28, 2026, in arrears or default on monetary payments for more than 90 days with the institutions, or, if in arrears or default, they do not meet the materiality criterion set out in Bank of Portugal Notice No. 2/2019 and in Regulation (EU) 2018/1845 of the European Central Bank of 21 November 2018, and are not in a situation of insolvency, or suspension or cessation of payments, or are not already in execution proceedings by any of the institutions on that date;

    c) Have, as of January 28, 2026, their situation regularized with the Tax and Customs Authority and Social Security, respectively, in accordance with Article 177-A of the Tax Procedure and Process Code, approved by Decree-Law No. 433/99, of October 26, and Article 208 of the Code of Contribution Regimes of the Social Security Pension System, approved as an annex to Law No. 110/2009, of September 16.

    They also benefit from the measures provided for in Decree-Law No. 31-B/2026:

    Other companies that have their headquarters or carry out their economic activity in the aforementioned municipalities, regardless of their size, that, as of January 28, 2026, meet the conditions referred to in points b) and c) indicated above.

Operations excluded from the moratorium (Article 3, paragraph 2 of Decree-Law No. 31-B/2026)

  • Credit or financing for the purchase of transferable securities or the acquisition of positions in other financial instruments, whether or not they are guaranteed by those instruments;
  • Credit granted to beneficiaries of schemes, subsidies, or benefits, namely tax-related, for establishing their headquarters or tax residence in Portugal, including for investment activity, with the exception of citizens covered by the Return Program;
  • Credit granted to companies for individual use through credit cards by members of management, supervisory bodies, employees, or other employees.

Measures foreseen in the decree

The Decree provides for the following Measures (Article 4 of Decree-Law No. 31-B/2026):

  1. Extension, for a period equal to the term of this measure, of all loans with capital repayment at the end of the contract, in force as of January 28, 2026, together, under the same terms, with all their associated elements, including interest, guarantees, in particular those provided through insurance or credit instruments;
  2. Suspension, with respect to loans with partial repayment of principal OR with partial maturity of other monetary installments, during the period in which this measure is in force, i.e., until April 28, 2026, of the payment of principal, rents and interest due until the end of that period, with the contractual payment plan for installments of principal, rents, interest, commissions and other charges being automatically extended for a period identical to the suspension period, in order to ensure that there are no other charges beyond those that may arise from the variability of the reference interest rate underlying the contract, with all elements associated with the contracts covered by the measure also being extended, including guarantees;
  3. Suspension, only of the total reimbursement of capital, or part of the capital, during the period in which this measure is in force, i.e., until April 28, 2026, at the request, at any time, of the entities benefiting from the measures provided for in points 2 and 3 above.

These measures apply to eligible credit operations that are ongoing as of January 28, 2026.

Additional Measures (Article 12 of Decree-Law No. 31-B/2026):

Within 60 days from January 28, 2026, the Government will approve new exceptional measures to protect credit, to be in effect for a longer period. 

Formalization of the moratorium (article 5 of Decree-Law no. 31-B/2026)

The request should preferably be made electronically.

To expedite the application process for Clients, BBVA provides a template for a declaration of adherence to the Moratorium. For signature purposes: i) In the case of individuals and sole traders, it must be signed by all borrowers; and, ii) in the case of companies and private social solidarity institutions, as well as non-profit associations and other entities, it must be signed by their respective legal representatives.

The membership certificate can be obtained here.

Once the request to join the moratorium is received, BBVA verifies whether the conditions for legal eligibility are met and will communicate its decision after receiving the declaration of adherence and the supporting documentation proving the regularity of the respective tax and social security situation, or, with regard to the situation before the Tax Authority and Social Security, the declaration of the existence of a negotiation process for the regularization of the default or the request for regularization of the default situation (in accordance with Article 177-A of the Tax Procedure and Process Code and Article 208 of the Code of Contribution Regimes of the Social Security and Pension System), using the same means that the client used to formulate their request to join the legal moratorium.

DECISION DEADLINES 

BBVA will communicate its decision within the following timeframes:

  • 3 business days after receiving the declaration and documents if the Client does not meet the requirements;
  • 5 working days if the requirements are met, with the moratorium being applied with effect from January 28, 2026 (the supporting documentation of the aforementioned tax and social security situation must be sent together with the declaration of adherence);
  • The lack of response from BBVA within 5 working days will result in the direct application of support measures to the beneficiary entities.

Additional impacts resulting from the application of the moratorium (Article 4 of the Notice of Decree-Law No. 31-B/2026)

Between January 28, 2026 and April 28, 2026:

1. Prohibition on the total or partial revocation of contracted credit lines and granted loans, in the contracted amounts:
The total or partial revocation of existing credit lines and loans, in amounts contracted as of January 28, 2026, is prohibited until April 28, 2026. In this sense, any amounts already committed are guaranteed, whether or not they have been used.

2. Prohibition on charging commissions, expenses or other fees:
Under Decree-Law No. 31-B/2026, institutions are prohibited from charging fees, expenses or other charges, particularly with regard to the analysis and formalization of access to the moratorium.

3. The extension of the payment deadline for principal, rents, interest, commissions and other charges referred to in subparagraphs b) and c) of paragraph 1, in accordance with Article 4, paragraph 4 of Decree-Law No. 31-B/2026, does not give rise to any:

  • Contractual breach, including cross-default of contracts not covered by this regime;
  • Activation of early termination clauses;
  • Activation of clauses providing for monetary penalties;
  • Activation of control change clauses that allow institutions to control the assets of beneficiaries;
  • Suspension of interest payments due during the extension period, which are capitalized into the loan amount with reference to the time they are due at the rate of the contract in effect; and
  • Ineffectiveness or termination of guarantees granted by the beneficiary entities of the measures or by third parties, specifically the effectiveness and validity of insurance policies, guarantees and/or sureties.

For more information, contact your Manager.