The Banco Português de Fomento (BPF) has approved more than 20,000 financing operations totaling €4.7 billion since the start of 2026, a pace that puts the institution on track to meet its year-end target of €8 billion in business support. The figures, presented by Economy Minister Manuel Castro Almeida to parliament on September 16, underscore the bank's expanding role in Portugal's economic infrastructure—particularly following its September 1 takeover of export credit insurance from the private sector.
Why This Matters
• The €4.7 billion already approved in 2026 supports over 12,000 companies through September, with a year-end target of more than 20,000 firms.
• Fomento Trade, the new state-backed export insurance system, replaced COSEC on September 1, offering up to 90% coverage on short-term export risks.
• Export-dependent SMEs can now access state-guaranteed insurance more easily, especially when targeting new markets deemed too risky by private insurers.
• A €1.5 billion reconstruction program remains available for Central Region businesses affected by Storm Kristin.
A Quiet Power Shift in Export Finance
The most significant shift buried in the numbers is not the volume of loans but a structural change in how Portugal supports its exporters. Since the beginning of September, the Banco Português de Fomento has operated as Portugal's Export Credit Agency (ECA), taking over a mandate that had been managed by COSEC—now part of Allianz Trade.
The previous model drew consistent criticism from the business community. Private export credit insurance was "scarce," according to Castro Almeida, and companies frequently complained about the difficulty of obtaining coverage when trying to land new clients in unfamiliar markets. The complaint was not merely operational; it was strategic. Portugal cannot grow on domestic consumption alone, the minister argued, and must instead accelerate GDP growth through increased exports.
The new structure, branded Fomento Trade, is designed to fix that gap. It offers two distinct product lines. For short-term operations—credit periods up to two years—companies can access insurance covering up to 90% of the insured value against commercial, political, and catastrophic risks. These policies will be distributed through private credit insurers operating in Portugal (including Coface, Atradius, and Allianz Trade itself), but under BPF management and with state backing. For medium and long-term operations exceeding two years, Fomento Trade offers direct guarantees including export credit guarantees, bonds for international contracts, and coverage for Portuguese investments abroad.
What This Means for Residents
For business owners and entrepreneurs in Portugal, the institutional shift translates into tangible opportunities. Companies that previously struggled to insure receivables from riskier markets—think Portuguese firms trying to expand in Angola, where a new €2 billion coverage line was recently established—now have a state-backed mechanism to mitigate non-payment risk. The message from Lisbon is clear: the government wants Portuguese firms to be more aggressive in seeking new clients abroad, and it is willing to share the risk to make that happen.
Start-ups and newly constituted companies should also note that BPF financing is not limited to established exporters. The institution offers medium and long-term loans for fixed asset investment, including leasing arrangements, as well as working capital for new businesses. The "Portugal Growth 2026" program specifically targets SMEs seeking expansion capital. Owners planning succession or scale-up strategies can also access financing for share acquisitions, a niche product that addresses the challenges of business continuity in family-owned enterprises.
Perhaps most urgent for some: companies in the Central Region still recovering from the devastation of Storm Kristin can access the €1.5 billion "Programa de Apoio à Reconstrução" launched in February. The program prioritizes immediate liquidity and long-term reconstruction to preserve jobs and the regional business fabric. Businesses that delayed applications should note that this is specific, time-bound support directed at a defined geography.
Catching Up With European Peers
Portugal's move brings its export finance framework closer to models long used by its European counterparts. The comparison is instructive for what it reveals about Portugal's previous underperformance. Spain's CESCE, for instance, issued €3.39 billion in state-backed insurance in the first half of 2026 alone, covering a total operational value of €14.4 billion. Germany's Hermes Cover system, managed by Allianz Trade on behalf of the federal government, is so established that in 2022 it generated a profit of €413 million for the state while covering transactions up to €100 million. France long ago split its operations: private insurer Coface handles commercial risks, while public bank Bpifrance manages state guarantees.
Against that backdrop, Portugal's previous export credit insurance volume of roughly €230 million in 2025 looks, in the minister's words, "modestíssimo"—vanishingly modest. The restructuring is a belated recognition that Portuguese exporters were competing with one hand tied behind their backs. State-backed export credit insurance is standard practice across the EU, governed by common rules to prevent competitive distortion. Portugal was simply not using the tool effectively.
The Practical Mechanics for Business Owners
For SME directors wondering how to actually access these instruments, the process varies by product. Short-term export credit insurance (under two years) will still be sold through private insurers—the difference is that these insurers now operate under BPF guidelines with state reinsurance backing. That should mean more willingness to underwrite risk, particularly for new buyers in non-traditional markets. Medium and long-term guarantees are applied for directly through the BPF.
Existing policyholders should note the transition rules. Policies applied for by August 31, 2026, continue to be managed by Allianz Trade (the former COSEC). Only new applications from September 1 onward fall under the Fomento Trade structure.
The broader context is one of strategic recalibration. The €4.7 billion already approved in 2026 represents a substantial acceleration from the €3.5 billion supporting 12,000 companies recorded as of May. The pace suggests the year-end target of exceeding €8 billion and supporting more than 20,000 companies is achievable, not aspirational. That would represent a significant deepening of the state's role in business finance—directly funding reconstruction, capitalization, investment, and now export risk mitigation.
