The Government of the Azores has decided to extend for another 90 days the application deadlines for the credit lines "Azores Invest II," "Azores Companies III" as well as for the financial restructuring of companies support. These measures are part of the Programme for the promotion of Employment and Competitiveness in the Azores.

The deadline for applications, which ended this week, was extended until September 3 by an order issued by the Vice-President, thus allowing Azorean companies to access these support mechanisms for another 3 months.

According to the Vice-President of the Government, "there has been an excellent adherence rate to these financial support systems for Azorean companies as evidenced by the widely recognition of all social partners and business entities."

Under these credit lines established by the Regional Government, Sérgio Ávila revealed that "2086 companies have already been supported. The support measures have secured a new banking funding in the total amount of 71.7 million Euros and a refinancing of about 279.2 million Euros, which have been a fundamental support to the liquidity of our companies."

Regarding the credit line "Azores Invest II," 491 regional companies were granted a total amount of 23.3 million Euros in new bank funding and every day we are approving new funding," said the Vice-President.
 
Sérgio Ávila also noted that "Azorean companies have at their disposal financial support system that is significantly advantageous and beneficial to companies than those in force in the remaining national territory, being an added value to reinforce their competitiveness and sustainability."

 "Given the success and timing of the creation of such measures and the request of various business entities, we have decided to we decided to extend the application deadlines for these measures in order to cover and support more Azorean companies," announced the Vice-President.

 One should remind that the "Azores Invest II" is a subsidised credit line that was created with the purpose of reinforcing the working capital, permanent capitals and the investment in the companies' tangible or intangible fixed assets.

With regard to regard to this credit line, the amount of credit to be granted is of 25,000 Euros for micro companies and 50,000 Euros for small companies 300,000 Euros for medium and large companies. The repayment deadlines may go up to eight years and have a repayment grace period up to 18 months.

"Azores Companies III" is a credit line for the settlement of debts owed by Azorean companies and funding operations for the payment of debts to tax services or to Social Security.

 In order to reduce the companies' spread costs, the Government, in conjunction with the Mutual Guarantee Society, will guarantee the bank loan up to 75% with the purpose of encouraging and facilitating credit granting. This situation is expected to greatly reduce credit risks and improve the companies' attractiveness for banks.

With regard to the Bank Debt Restructuring and Liquidity Support Line, this measure allows companies to accommodate the restructuring of funding already obtained by increasing the repayment of loans. It also assures a new grace period of twelve months, in addition to the compulsory and simultaneous granting of new funding to companies, which will boost their liquidity.

One should recall that this support line will allow the refunding of companies up to a total amount of 100 million Euros. The Government will assume 75% of the financial burden with the bank spread up to a maximum interest rate bonus of 4.5 percentage points; this support will be limited to the financial burden incurred by the company in the last 45 months with the funding under restructuring plan. Under these measures, the stipulated amount of credit to be granted is of 25,000 Euros for micro companies and 50,000 Euros for small companies. In the case of the remaining companies, the minimum amount to be awarded should correspond to 10% of the restructuring process, which may go up to 300,000 Euros.