Other ADB Members
Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline|
|01A - Short-term lending info_outline||
No amount/estimate: 20 May 2020, The government will grant financial aid up to EUR500,000 in the form of a repayable advance to cover documented loss of income.
|01B - Support policies for short-term lending info_outline||
No amount/estimate: In line with the European Central Bank's (ECB) recommendation on dividend distribution during the COVID-19 pandemic, banks were advised to refrain from distributing accumulated profits should this constrains their capacity to meet their clients’ credit and liquidity needs.
|01C - Forex operations info_outline|
|02 - Credit creation info_outline||EUR6,100,000,000||USD6,747,787,611|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline|
|02B1 - Interest rate reductions|
|02B2 - Other policies to support long-term lending||
No amount/estimate: (i) The Luxembourg authorities have intensified off-site oversight of key risks in the banking sector and stepped up surveillance of investment funds, including new requirements for weekly updates on financial data and fund managers’ governance arrangements. They have introduced a draft law which, among others, grants the supervisory bodies powers to extend, for the duration of the COVID-19 crisis, reporting deadlines for entities under their remit; (ii) Banks were advised to refrain from distributing accumulated profits should this constrain their capacity to meet their clients’ credit and liquidity needs.
|02C - Loan guarantees||EUR6,100,000,000||USD6,747,787,611||
(i) 25 March 2020: EUR2.5 billion (3.9% of 2019 GDP) loan guarantee facility of the State of 85% of credit lines granted by selected banks between 18 March and 31 December 2020; (ii) No amount/estimate: Export guarantees provided by the Office du Ducroire; (iii) No amount/estimate: Companies with cash flow difficulties can request guarantees from the “mutualités de cautionnement”; (iv) 30 April 2020, EUR3.6 billion from extending credit guarantees for new bank loans and special anti-crisis financing for SMEs and large companies.
|03 - Direct long-term lending info_outline||EUR1,000,000,000||USD1,106,194,690|
|03A - Long-term lending info_outline||EUR1,000,000,000||USD1,106,194,690||
(i) EUR700 million new loan facility by Societe Nationale de Credit et d'Investissement (SNCI, a public bank) in collaboration with commercial banks, with maximum duration of 5 years; (ii) 25 March 2020, EUR300 million for repayable advances to companies, as well as liberal professions, to cover operating costs (repayment will begin 12 months after obtaining the repayable advance).
|03B - Forbearance||
No amount/estimate: (i) The SNCI has announced the relaxation of repayment conditions for existing loans granted by it, suspending principal repayments for direct and indirect loans at the March 31 and June 30 maturities. The duration of all these financings will be automatically extended by 6 months; (ii) April, Commitment by Luxembourg banks to offer a 6-month moratorium on loans for SMEs, self-employed and liberal professionals.
|04 - Equity support info_outline|
|05 - Health and income support||EUR9,177,000,000||USD10,151,548,673|
|05A - Health support||EUR194,000,000||USD214,601,770||
Additional expenditures in the context of health and crisis management, notably for the procurement of medical equipment and infrastructure (up to EUR194 million). These are part of the EUR1.45 billion fiscal package from March 2020, and deducted from Measure 5B3.
|05B - Income support||EUR8,983,000,000||USD9,936,946,903|
|05B1 - Tax and contribution deferrals and policy changes||EUR4,550,000,000||USD5,033,185,841||
Part of the fiscal package adopted by the Parliament: Postponing tax and social-security contribution payments for the first two quarters of the year (EUR4.55 billion)
|05B2 - Tax and contribution rates reduction|
|05B3 - Wage support and subsidies to individuals and households||EUR2,813,000,000||USD3,111,725,664||
(i) 25 March 2020, as part of the fiscal package adopted by the Parliament: (a) EUR400 million coverage of employees’ leave for family reasons, (b) EUR1 billion paying partial-unemployment benefits and other expenditures; (ii) 30 April 2020, EUR2.257 billion fiscal package has been partly adopted by the Parliament. Key spending measures include: (a) EUR332 million to cover employees’ leave for family reasons and sick leave and (b) EUR1 billion for paying partial-unemployment benefits; (iii) No amount/estimate: 9 July 2020, the government announced a series of measures to fight unemployment by providing support for unemployed people of advanced age and incentives for businesses to further educate young workers, and making professional training programs more accessible to young workers.
|05B4 - Subsidies to business||EUR820,000,000||USD907,079,646||
(i) As part of the EUR1.45 billion fiscal package: EUR50 million providing non-repayable financial aid to micro enterprises; (ii) As part of the EUR2.257 billion fiscal package: (a) EUR400 million to grant capital advances to cover companies’ operating costs; (b) EUR250 million for providing non-repayable financial aid to micro enterprises; (c) No amount/estimate: 22 July 2020, Approved a new aid instrument to cover up to 50% of investments in companies suffering from the impact of the COVID-19 crisis; (ii) 13 November 2020, EUR120 million in capital grants to cover fixed costs and extended flat-rate financial aid for affected sectors (tourism, events, culture and entertainment) through March 2021. Several existing aid schemes (available to all sectors) have been extended through Q2 2021, including partial unemployment benefits, credit guarantees and capital advances.
|05B5 - Indirect income support|
|05B6 - No breakdown (income support)||EUR800,000,000||USD884,955,752||
(i) EUR800 million estimated as total cost of the following measures: (a) cash grants to companies in heavily affected sectors that still do not have authorization to reopen, (b) lump-sum stimulus for SMEs in retail trade, (c) doubling the cost-of-living-allowance and introducing a family-support leave, and (d) investment aid for development, process/organizational innovation, or energy efficiency projects.
|05C - No breakdown (health and income support)|
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received|
|08A - Swaps info_outline|
|08B - International loans/grants|
|08B1 - Asian Development Bank|
|08B2 - Other|
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures||
(i) Temporary suspension of refunds for cancelled package holidays in support of travel agents; (ii) Commitment by Luxembourg banks to offer a 6-month moratorium on loans for SMEs, self-employed and liberal professionals; (iii) The Luxembourg authorities issued guidance on COVID19-related financial crime and AML/CT issues; (iv) To finance measures, the government issued a EUR2.5 billion bond (3.9% of 2019 GDP) at a negative interest rate; (v) Bilateral agreements with France and Belgium regarding the taxation of cross-border workers resorting to telework in the context of the current crisis; (vi) 6 September 2020, Job training for jobseekers with some secondary education. The program lasts three months and is focused on the development of soft skills, digital skills, project management skills, and optional training in office automation or data and coding.
|12 - Non-Economic Measures|
|12A - Measures affecting travel and transport (local and international)|
|12B - Measures affecting business and workplace||
(i) People have been encouraged to self-isolate and should only leave the house for essential activities such as food shopping, going to work (note: working-from-home if possible), going to doctors and to help vulnerable people; (ii) All schools, universities and kindergartens have been closed since 16 March, until at least 4 May 2020; (iii) On 15 April 2020, the government announced a multiphase lockdown exit strategy, with phases comprising activities/tentative opening dates as follows: Phase 1-construction sites and selected activities-including craft, landscaping, and recycling services (20 April 2020); Phase 2-secondary education (11 May 2020); Phase 3: basic education and childcare facilities (25 May 2020); later phases-commercial activities and the hospitality sector (dates to be determined); (viii) 4 September 2020, the government announced a plan for school reopening, including more autonomy for schools to implement specific measures depending on the local health situation;
|12C - Others||
(i) To achieve a well-sequenced lifting of the lockdown restrictions and avoid a second wave of COVID-19 infections, the government envisages to perform large-scale testing on a voluntary basis, including cross-border commuters; (ii) All public gatherings are prohibited; (iii) All cultural and recreational events (incl. sport events) are suspended; (iv) 20 May 2020, The Luxembourg Ministry for the Economy has set-up a hotline and website with information for enterprises, which includes a FAQ on existing measures for companies, including SMEs (financial support and partial employment); (v) 16 July 2020, Mandatory face masks for both public and private gatherings of more than 20 people in case physical distance of 2 meters cannot be guaranteed; (vi) 16 July 2020, Fines for customers of bars and restaurants if they disregard the precautionary measures; (vii) 22 September 2020, the government extended restrictive measures until year-end and introduced new measures that include: (a) reducing the isolation period for infected people with; (b) allowing the processing of personal data that will be kept for a period of three months and then anonymized; and (c) making it mandatory for airlines to automatically transfer to health authorities forms completed by passengers to facilitate contact tracing; (viii) 29 October 2020, the government introduced temporary measures to address the recent spike in cases, including: (a) 11pm-6am curfew (until 30 November 2020), (b) a 4-person limit on the number of house guests, and (c) mandatory face masks at gatherings of more than 4 people.