What moratorium measures have been created?

Under Decree-Law no. 07/20, of 7 May, and Permanent Application Rule no. 07/2020 issued by the Central Bank of Sao Tome and Principe, on 22 may 2020, bank customers may benefit from referrals on the payment of the due instalments, provided they are able to demonstrate they have been affected by the measures adopted within the framework on the fight against Covid-19.

This suspension also relieves the employee's guarantor in the event that he is the principal debtor and is made redundant. 

 

Will expenses and commissions be charged as means to benefit from the above measures?

No, these benefits are exempt from expenses and commissions.

 

Who may benefit from these measures?

The measures cover a very wide range, including companies, and other legal persons as well as self-employed people, private social security institutions, non-profit associations and individuals , provided they can prove that, due to Covid19-related events, they have suffered the loss of at least 50% of their turnover compared to the thirty days preceding the request.

Companies shall mandatorily prove they perform their activity in the country and are duly incorporated under the applicable legislation.

It should be noted that the beneficiaries of this measure may not be, by 31 March 2020, in a situation of bad debt, for more than 90 days, nor in a situation of insolvency, suspension or assignment of payments, nor will it be possible, on that date, for them to already be subject to an enforcement procedure.

Individuals receiving State social security pensions or receiving income from work can not benefit from these measures.

 

Non-compliance with the legal regime

Entities accessing the measures which do not fulfil the conditions for such purpose, as well as persons subscribing to the documentation required for such purposes, shall be liable for any damage resulting from false statements, as well as for the costs incurred in the enforcement of such measures, without prejudice to other liability generated by the conduct, notably criminal liability.

 

What is the duration of this scheme?

The scheme entered into force on 7 May and shall be in force until 7 August and may be extended in whole or in part.

 

 

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This information is being updated on a regular basis.

The information provided and the opinions expressed herein have been prepared with the help of VdA Legal Partners and are of a general nature. They are not in lieu of appropriate legal advice in connection with specific cases.