‘State called to pay as soon as young person misses instalment on credit with public guarantee’ (with João Santos Carvalho)

‘João Santos Carvalho, a Partner in the Banking and Finance law area at SRS Legal, explains that this clause means that the banks' “first request” in the event of default can be to exercise the guarantee (without first executing the client's assets). guarantee (without first executing the client's assets).
The lawyer adds that this is ‘a market feature of personal guarantees (such as sureties and guarantees (such as sureties and guarantees) that the legislator followed in design of this guarantee’. And what happens afterwards? Even before launch of the legislation for this measure, the government had already indicated that the bank client will then be responsible for reimbursing the paid by the public purse.’