The State authorized a reinforcement of 100 million euros of the public guarantee for own and permanent housing credit for young people up to 35 years old, through new amounts allocated to Novobanco and Banco Montepio. Novobanco will benefit from a reinforcement of 40 million euros, while Montepio will have an additional 60 million euros of portfolio guarantee.
The reinforcement comes after the overall public guarantee limit was successively increased. The amount initially set at 1.2 billion euros was reinforced by 350 million euros in September 2025 and by another 750 million euros in April of this year, bringing the total limit to 2.3 billion euros.
The order, signed by the Secretary of State for the Treasury and Finance, João da Silva Lopes, responds to requests submitted by the two institutions to the Managing Entity of the Guarantee Reserve, taking into account the forecast of credit operations to be carried out and their allocation to the public guarantee. The new order does not change the overall limit, but authorizes the redistribution of additional capacity to the two institutions.
The Government justifies the new reinforcements with the need to allow participating institutions that have exhausted the guarantee limit initially assigned to them to continue granting credit under the measure, which aims to encourage young people's access to housing, being considered in the interest of the national economy. The public guarantee allows facilitating access for young people up to 35 years old to credit for purchasing their first own and permanent home, by providing the bank with a State guarantee on part of the financing.
