This diploma had been approved in mid-August by the Council of Ministers and promulgated by the President of the Republic at the end of that month, based on the opinion of the European Commission regarding the capital stock of the institution and the purpose of alternative financing to the private sector, under the formal procedure of notification of state aid.
The Minister of State and Economy, Siza Vieira, on the day the Council of Ministers approved the creation of the bank, had already announced that the new regime would come into force within 40 working days after its publication.
The Banco Português de Fomento, which has all the activities that are allowed by law to financial companies as its object, intends to foster the modernisation of companies and economic and social development, namely “filling market gaps or situations of need for investment optimisation and promoting sustainability and economic, social and territorial cohesion in Portugal”.
This institution results from the merger of the Development Financial Institution (IFD), the Portuguese Mutual Guarantee System (SPGM) and SME Investments, to “directly support companies without the need for intermediation of the banking system”, and will have a share capital of 255 million Euros.
The creation of the Banco de Fomento was foreseen in the Economic and Social Stabilisation Programme (PEES) approved by the Government as part of the fight against the economic crisis caused by the Covid-19 pandemic.