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-2022-19/2251 – measures in Luxembourg
Country | Luxembourg , applies nationwide |
Time period | Temporary, 01 May 2022 – 31 December 2022 |
Context | War in Ukraine, Green Transition |
Type | Legislations or other statutory regulations |
Category |
Supporting businesses to stay afloat
– Access to finance |
Author | Patrick Thill (LISER) and Eurofound |
Measure added | 12 May 2022 (updated 07 October 2022) |
The Government is committed to putting in place new aid both in the short term for companies heavily impacted by rising energy prices, and in the short and medium term to support companies in the energy transition and decarbonisation of their activities, in line with European rules on state aid.
In this context, the aid scheme in the form of a guarantee is intended to facilitate access to bank loans for eligible companies that have liquidity needs due to the economic consequences of Russia's aggression against Ukraine.
The aid scheme in the form of guarantees was put in place by the law of 15 July 2022.
Following the example of the scheme put in place at the beginning of the COVID pandemic, the state guarantee could cover up to 90% of the loan.
The bill on the aid scheme was submitted to the Chamber of Deputies on 28 April 2022. It provides for loans to be granted by credit institutions between 1 May 2022 and 31 December 2022 to companies that have liquidity needs due to the economic consequences of Russia's aggression against Ukraine, under the conditions defined by the bill.
The maximum amount of loans eligible for the state guarantee is:
Where the applicant has been in existence for less than 3 years or 12 months respectively, the thresholds shall be calculated on the basis of the period of existence at the time of notification to the Treasury pursuant to Article 4(1) of the Bill (see attachement: "projet de loi").
The following undertakings are excluded from the scope of application of this law:
The State guarantee covers investment loans and working capital loans with a maximum duration of six years.
All companies. No current estimation.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers | Applies to all businesses | Does not apply to citizens |
Actors | Funding |
---|---|
National government
|
National funds
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | No involvement | Informed |
Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
Social patners are not involved.
This measure is part of a package of provisions that have been requested by employer's organisation and trade unions during the Tripartite meeting in March 2022.
Citation
Eurofound (2022), Loan guarantees for companies with liquidity issues, measure LU-2022-19/2251 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2022-19_2251.html
Share
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.
Article12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.
Article12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Article5 July 2022
This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.
ArticleDisclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.