Finance
Portugal launches $3 billion package to help rebuild after storm Kristin
Published by Global Banking & Finance Review®
Posted on February 1, 2026
2 min readLast updated: February 1, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 1, 2026
2 min readLast updated: February 1, 2026
Portugal unveils a €2.5 billion aid package to aid recovery from Storm Kristin, offering loans and incentives to businesses and homeowners.
By Sergio Goncalves
LISBON, Feb 1 (Reuters) - Portugal's government approved a 2.5 billion euro ($3.0 billion) package of loans and incentives on Sunday to help people and businesses rebuild after the devastation caused by Storm Kristin, Prime Minister Luis Montenegro said.
Storm Kristin swept across central mainland Portugal early on Wednesday, with wind gusts topping 200 km/h (124 mph) and heavy rain that killed at least six people, damaged homes, factories and infrastructure, and cut power to hundreds of thousands, authorities said.
Montenegro said the public bank Banco de Fomento will launch a 1 billion euro loan programme to rebuild uninsured storm-damaged factories and a 500 million euro financing scheme to help them with their immediate cash-flow needs.
The remaining 1 billion euros in aid includes a financing line to help people rebuild uninsured primary homes, covering up to 10,000 euros per house, as well as social security subsidies for individuals facing hardship or income loss, worth up to 537 euros monthly per person or 1,075 euros per family.
He said that, given the "current exceptional circumstances", all reconstruction work will be exempt from licensing and prior urban planning, environmental and administrative approvals.
"We are mobilising all our resources to manage the emergency responsibly, but also with hope...once again, we will rebuild Portugal," he said at a press conference.
Montenegro said the government also extended the "state of calamity" declared in about 60 hard-hit municipalities until February 8, amid forecasts of more heavy rain and flooding, even though winds are expected to ease compared with last week.
A state of calamity - Portugal's highest civil protection alert used for major disasters - allows authorities to mobilise emergency and armed forces, fast-track procurement and limit access to affected areas without curbing constitutional rights.
Nearly 180,000 households were still without electricity on Sunday, as grid operator REN and distributor E-Redes scrambled to restore power, the companies said.
($1 = 0.8440 euros)
(Reporting by Sergio Goncalves; Editing by Hugh Lawson)
The article discusses Portugal's €2.5 billion aid package to aid recovery after Storm Kristin.
The package includes loans for businesses and financial support for homeowners affected by the storm.
It is Portugal's highest civil protection alert, allowing emergency measures in affected areas.
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