The Ministry of Agriculture and Sea, in collaboration with the Ministry of Finance and the Portuguese Development Bank, will offer a 100 million euro credit line with interest fully subsidized by the State Budget, as stated in a press release.
This credit line is aimed at financing payment requests for projects under the Rural Development Program (PDR) 2020 that transition to the Strategic Plan for the Common Agricultural Policy (PEPAC).
The Ministry of Agriculture assured that this mechanism will not impose additional costs on project promoters and ensures the complete execution of PDR 2020 funds.
A European Parliament regulation from December 2021 stipulates that payments for applications approved in overbooking (exceeding capacity) can only be made from January 1, 2026.
The ministry headed by José Manuel Fernandes clarified that the credit line addresses the limitations of this regulation, allowing beneficiaries to continue ongoing projects without interruption.
“The Government is addressing inherited constraints and accelerating fund execution, ensuring not a single cent of PDR 2020 or PEPAC will be lost. Our aim is clear: to improve farmers’ income, promote generational renewal, strengthen sector competitiveness, and reduce the agro-food trade balance deficit,” he emphasized.
