“The Ministry of Agriculture and Sea, in coordination with the Ministry of Finance and the Portuguese Development Bank, will provide a credit line of 100 million euros, with interest fully subsidized at 100% by the State Budget,” it indicated in a statement.
This line is intended to finance payment requests for projects under the Rural Development Program (PDR) 2020 that transition to the Strategic Plan of the Common Agricultural Policy (PEPAC).
The Ministry of Agriculture assured that this mechanism will not incur additional costs for project promoters and ensures the full execution of PDR 2020 funds.
A European Parliament regulation from December 2021 specifies that payments for applications approved in ‘overbooking’ (over 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 the execution of funds, ensuring we will not lose a penny from PDR 2020 or PEPAC. Our goal is clear: to improve farmers’ income, promote generational renewal, strengthen sector competitiveness, and reduce the agro-food trade balance deficit,” he emphasized.
