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Decree Law No. 106/2019

Publication: Republic Diary No. 153/2019, Series I of 2019-08-12
  • Issuer: Presidency of the Council of Ministers
  • Diploma Type: Decree Law
  • Number: 106/2019
  • Pages: 2 - 9

Summary in plain english

What is it?

This decree-law transfers the deposits guarantee function of the Mutual Agricultural Credit Guarantee Fund (FGCAM) to the Deposits Guarantee Fund (FGD).

Currently, the FGCAM exists to:

    • ensure the reimbursement of deposits at the Mutual Agricultural Credit Central Fund (CCCAM) and at the mutual agricultural credit funds participating in the Mutual Agricultural Credit Integrated System (SICAM),
    • as well as to promote and carry out the actions deemed as necessary to ensure the liquidity and solvency of the mutual agricultural credit funds participating in SICAM.
What is going to change?

The guarantee function of all deposits in Portugal is now concentrated on a single guarantee fund.

For this purpose, CCCAM and the associated mutual agricultural credit funds, which participate in FGCAM, become participants in FGD.

FGCAM transfers the financial resources necessary for the integration of CCCAM and the agricultural credit funds participant in SICAM in FGD.

After the transfer, FGCAM becomes an autonomous asset and operates together with CCCAM, aiming to pursue its assistance purpose.

What advantages does it bring?

The transfer of the guarantee function of all deposits in Portugal to a single guarantee fund ensures a greater efficiency on the resources management and reduces the operational costs, benefiting the deposits’ protection at a national level.

It also allows to separate the deposits guarantee function from the assistance aspect.

When does it enter into force?

This decree-law enters into force on 1 January 2020.

Original Version

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