Resources

The Fund’s financial resources mainly comprise the annual contributions by member institutions, but they also include the initial contributions paid by Banco de Portugal as well as income from loans or investments.

Pursuant to Article 9 of Decree-Law No 345/98, member agricultural banks shall pay an annual contribution to FGCAM, in accordance with the provisions laid down in a Notice of Banco de Portugal, after hearing the Fund's Management Committee.

The value of the annual contribution shall be based on the average amount of the monthly credit balances of deposits over the previous year which are eligible for this purpose, and shall be paid in two instalments, the first of which in April and the second in October of the year to which they refer.

Pursuant to the applicable legislation (Notice of Banco de Portugal No 14/2003), the amount of the contribution by the Central Mutual Agricultural Credit Bank and the agricultural banks to FGCAM, on an annual basis, is determined by applying a rate to the average monthly value of the credit balances of eligible deposits over the previous year. This rate is calculated by applying to the contribution base rate a multiplier calculated according to the solvency ratio of each institution. The contribution base rate is calculated, on an annual basis, according to the Fund’s coverage ratio over the previous year. The coverage ratio is determined on the basis of the balance sheet structure of FGCAM and corresponds to the ratio of deposits with credit institutions to deposits guaranteed by FGCAM