On 27 July 2022, Finance Minister Yuriko Backes signed an agreement with representatives of the banks BCEE, BIL, BGL BNP Paribas, Banque de Luxembourg, Raiffeisen and ING, and in the presence of Guy Hoffmann, Chairman of the ABBL, framing the State-guaranteed loan scheme set up by the law of 15 July 2022 in favour of the Luxembourg economy in the context of the war in Ukraine.
This scheme was announced following the meetings of the Tripartite Coordination Committee in March 2022 in the framework of the "Solidaritéitspak". It aims to alleviate the liquidity needs of businesses affected by the consequences of the war in Ukraine, in particular the substantial increase in the price of raw materials and energy, by ensuring that banks continue to provide credit to the real economy. The scheme is based on a model that has already proved successful during the COVID-19 crisis.
Through the scheme, companies of all sizes are eligible for new loans of up to 6 years, which can amount to either 15% of the company's average annual turnover over the last three years or 50% of the company's energy costs over a 12-month period. The State guarantees 90% of the nominal amount of the loans granted, up to a maximum of 500 million euros.
Yuriko Backes, Minister of Finance, commented: "The government is supporting businesses to cope with the economic impact of Russia's unjustified and unjustifiable war against Ukraine. The guaranteed loan scheme proved its worth during the COVID-19 pandemic. Today, the Luxembourg banking sector demonstrates once again its commitment to contribute to solutions to overcome the crises the country is facing."
Press release by the Ministry of Finance
The banking sector demonstrates once again its ability to work hand in hand with the Government to put in place measures to support the economy in a context of crisis and keep it going.