Decree Law No. 63/2020
- Issuer: Presidency of the Council of Ministers
- Diploma Type: Decree Law
- Number: 63/2020
- Pages: 2 - 22
Summary in plain english
This decree-law regulates the activity and operation of Banco Português de Fomento (BPF), merging by incorporation PME Investimentos - Sociedades de Investimento, S.A. (PME Investimentos) and IFD - Instituição Financeira de Desenvolvimento, S.A. (IFD), in SPGM - Sociedade de Investimento, S.A. (SPGM), the coordinating entity of the Portuguese Mutual Guarantee System.What is going to change?
Portugal will now have an institution that will perform, in the national market, the typical functions of a true national promotional bank.
The BPF is created through the merger by incorporation of the public financial companies with attributions in the national economy - IFD and PME Investimentos - into the SPGM, which, in turn, will become Banco Português de Fomento, S.A. and will succeed in all the rights and obligations of these companies.
As regards its operation, the BPF is subject to:
- to the supervision of the Bank of Portugal, in particular as regards the rules on corporate governance and internal control, as well as the Legal Framework for Audit Supervision;
- the regular control of the General Inspectorate of Finance and the Court of Auditors, within the scope of their respective powers;
- the management, control and audit procedures laid down in the rules for implementing the European structural and investment funds.
The policies defined for BPF action are evaluated at least once a year with the aim of identifying market failures in the financing of viable non-financial companies.
BPF's governing bodies are appointed by election at a general meeting in accordance with the Commercial Companies Code and other applicable legislation.What advantages does it bring?
This decree-law aims to create conditions for the recovery and economic growth of the country, maximising efficiency and the capacity to cover market failures in access to financing for companies.
In particular, the creation of BPF aims at leveraging national financial resources with support from European funds and partnerships with multilateral entities.When does it enter into force?
This decree-law enters into force on 3 November 2020, and Article 12, on the acquisition of the total ownership of the SPGM by public entities, enters into force on 8 September 2020.
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