Portugal says direct costs of Storm Kristin exceed $4.7 billion

Portugal faces more than 4  billion euros ($4.7  billion) in direct reconstruction costs following last week’s devastating Storm Kristin, Economy Minister Manuel Castro Almeida said, citing preliminary government estimates.

"It will be a very significant shock to the economy ... the more than 4 billion euros don't include indirect costs," such as disruptions to industry supply chains, he told national broadcaster RTP late on Wednesday.

He said "several business owners plan to build entirely new factories because their current ones are completely unusable, meaning recovery could take many months."

Workers at companies hit by Storm Kristin will benefit from a lay-off scheme guaranteeing their full net wage up to 2,760 euros per month, with Social Security covering 80% and firms 20%, to prevent job cuts during reconstruction, he added.

The storm swept across central mainland Portugal early on January 31, with winds topping 200 km/h and heavy rains, leaving widespread damage to homes, factories and critical infrastructure and killing at least six people.

The region of Leiria and Marinha Grande, one of Portugal's main industrial hubs known for its plastics and metalworking industries, was among the areas hardest hit by the storm.

The government on Sunday approved a 2.5 billion-euro package of loans and incentives to help people and businesses rebuild after the storm.

The Iberian Peninsula has endured a series of storms bringing heavy rain, snow, and strong winds in the past few weeks, and is now being battered by Storm Leonardo.

($1 = 0.8471 euros)

-Sergio Goncalves/Reuters