Storm Kristin Business Support 2026: Full Analysis

On 1 February 2026, the Council of Ministers approved a robust €1,500 million package to mitigate the damage caused by Storm Kristin. Credit lines with non-repayable components and bureaucratic waivers for immediate reconstruction are now available.

Faced with the state of calamity that struck the Central region, the Government acted with exceptional measures. The focus is not merely on restoring normality but on ensuring immediate liquidity for companies to prevent business interruption and job losses.

AIDA CCI has analyzed the official statement to present the technical conditions for accessing these new financial instruments.

Why and How to Access?

This package stands out by introducing debt-to-grant conversion mechanisms, crucial for not overburdening company balance sheets in the long term:

Immediate Treasury (€500M): For working capital and current needs. 5-year maturity with a 12-month capital grace period.
Asset Reconstruction (€1,000M): For works and equipment. 10-year maturity with an extended 36-month grace period.
Non-Repayable Incentive: After 36 months, companies may benefit from a 10% grant on the financed amount, provided they maintain activity and employment levels.

Administrative Simplification (Reconstruction Simplex)

To accelerate recovery, a regime of waiver of prior controls has been approved. Reconstruction works on affected buildings can proceed with a statement of responsibility, with inspections (urban planning and environmental) carried out ex-post.

Key Information

Bank Moratoriums: Valid for 90 days (starting 28 Jan 2026), potentially extendable to 12 months for cases of severe damage.
Coordination: Mission Structure for Reconstruction (Based in Leiria, Coord. Eng. Paulo Fernandes).
Insurance Coverage: Financed investments are required to have insurance coverage.