The decree-law 98-A/2025, dated August 24, which establishes measures to support and mitigate the impact of rural fires, comes into effect today, retroactively from July 1. It also creates a system to support the restoration of productive capacities and the economic competitiveness of affected companies and cooperatives.
The working capital support line for companies and cooperatives directly or indirectly affected by the fires aims to finance their working capital needs associated with restarting their activities.
Meanwhile, the support line for regeneration, tourism enhancement, and promotion of the territories impacted by fires seeks to finance public entities and nonprofit private entities affected directly or indirectly by the fires.
The support system for restoring the productive capacities and economic competitiveness of affected companies and cooperatives aims to restore their productive capacity, excluding the agriculture and forestry sectors, which receive specific support.
According to the terms of the decree, the maximum government financial aid, when there is no insurance contract and it is not mandatory, is capped at 25% of the verified damage.
If there is an insurance contract, the maximum support will be 50% of the difference between the verified damage and the compensation awarded by the insurer, “the support cannot exceed the value of the compensation awarded by the insurer.”
The exception is when the insurance compensation is less than 25% of the verified damage, in which case the rule that allows for a maximum support of 25% of the damage applies.
Public financial support will not be granted in situations where having an insurance contract that covers fire damages is mandatory and has not been fulfilled by the beneficiary.
