Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LU-2020-12/469 – Updated – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Temporary, 18 March 2020 – 30 December 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Patrick Thill (LISER) and Eurofound|
|Measure added||10 April 2020 (updated 21 July 2021)|
Based on a draft legislation still discussed in Parliament (Projet de loi Nr 7545 visant à mettre en place un régime de garantie en faveur de l'économie luxembourgeoise dans le cadre de la pandémie COVID-19) and in order to help businesses during the crisis, new credit lines will be guaranteed at 85% by the Luxembourg government and 15% by the participating banks (for example BCEE, Raiffeisen) for loans granted during the period starting 18 March 2020 until 20 December 2020. The loans are intended as a subsidiary tool, after having resorted, where possible, to the tools of the Société nationale de crédit et d'investissement (SNCI), the Office du Ducroire or the European Investment Bank in particular.
New credits for are reserved for businesses that were viable before 18 March 2020. The eligible business must contact one of the participating banks in Luxembourg to apply for a bank loan.
The maximum amount can be up to 25% of the business turnover for the year 2019. There are two pathways, depending on the size of the company:
For small and medium-sized enterprises, the guarantee premium, borne by the borrower, is set at:
For large companies, the guarantee premium, borne by the borrower, is set at:
Until 1st March 2021, 379 eligible applications were processed and granted to benefit from the state guarantee scheme to take out a bank loan of up to 25% of turnover. The total amount of the granted bank loans was €188,178,390.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Any other form of consultation, institutionalised (as stable working groups or committees) or informal||Any other form of consultation, institutionalised (as stable working groups or committees) or informal|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners assess the draft legislation in the course of the legislative procedure.
Eurofound (2020), State guarantee scheme for new bank loans for a maximum period of 6 years, measure LU-2020-12/469 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2020-12_469.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.