On Friday 20 May, the European Commission approved Luxembourg’s €500 million guarantee scheme to support companies in various sectors in the context of Russia’s invasion of Ukraine. The support was authorised under the State aid Temporary Crisis Framework adopted by the Commission on 23 March 2022.
The scheme aims to ensure that companies in need have sufficient liquidity, by providing a state guarantee on new business loans, by allowing banks to continue lending to the real economy. This measure will be open to companies of all sizes and sectors operating in Luxembourg, with the exception of the financial sector.
Beneficiaries will be eligible for new loans with a maximum duration of 6 years, which will be covered by a State guarantee not exceeding 90% of the loan amount.
The maximum loan amount per beneficiary that the state guarantee can cover is either (i) 15% of the beneficiary’s average total annual turnover over a predefined period or (ii) 50% of the energy expenditure incurred by the company over 12 months. (Original version in French by Lionel Changeur)