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: May 20, 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’s) 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||
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 constrains their capacity to meet their clients’ credit and liquidity needs.
|02C - Loan guarantees||EUR6,100,000,000||USD6,747,787,611||
(i) March 25: 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 Mar and 31 Dec 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”; (ii) April 30, 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) March 25, 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 - Government support to income/revenue||EUR9,057,000,000||USD10,018,805,310|
|05A - Health||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).
|05B - Non-health||EUR8,863,000,000||USD9,804,203,540||
March 25: (i) EUR1.45 billion fiscal package adopted by the Parliament, including: (a) EUR400 million (0.6% of 2019 GDP) coverage of employees’ leave for family reasons, (b) EUR1 billion (1.6% GDP) paying partial-unemployment benefits, and (c) EUR50 million (0.1% percent of 2019 GDP) providing non-repayable financial aid to micro enterprises; (ii) Part of the fiscal package adopted by the Parliament: Postponing tax and social-security contribution payments for the first two quarters of the year (EUR4.5 billion); April 30, EUR2.257 billion fiscal package has been partly adopted by the Parliament, including spending measures: Key spending measures include: (a) acquiring medical equipment and infrastructure (EUR194 million, 0.3% of 2019 GDP); (b) covering employees’ leave for family reasons (EUR226 million, 0.4% of 2019 GDP) and sick leave (EUR106 million, 0.2% of 2019 GDP); (c) paying partial-unemployment benefits (EUR1 billion, 1.6% of 2019 GDP); (d) granting capital advances to cover companies’ operating costs (EUR400 million, 0.6% of 2019 GDP); and (e) providing non-repayable financial aid to micro enterprises and eligible self-employed (EUR250 million, 0.4% of 2019 GDP); (iii) Liquidity support measures include postponing tax and social-security contribution payments for the first half of the year (EUR4.55 billion); (iv) 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; (iv) No amount/estimate: July 9, 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; (v) No amount/estimate: July 22, Approved a new aid instrument to cover up to 50% of investments in companies suffering from the impact of the COVID-19 crisis.
|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. One quarter of the lenders come from the insurance sector. The other investors are based in the eurozone, Great Britain, and Switzerland; (v) Bilateral agreements with France and Belgium regarding the taxation of cross-border workers resorting to telework in the context of the current crisis.
|12 - Non-Economic Measures||
(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 public gatherings are prohibited; (iii) All cultural and recreational events (incl. sport events) are suspended; (iv) All schools, universities and kindergartens have been closed since 16 March, until at least 4 May 2020; (v) On April 15, 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 (April 20); Phase 2-secondary education (May 11); Phase 3: basic education and childcare facilities (May 25); later phases-commercial activities and the hospitality sector (dates to be determined); (vi) 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; (vii) May 20, 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); (viii) July 16, Mandatory face masks for both public and private gatherings of more than 20 people in case physical distance of 2 meters cannot be guaranteed; (ix) July 16, Fines for customers of bars and restaurants if they disregard the precautionary measures; (x) September 4, the government announced a plan for school reopening, including more autonomy for schools to implement specific measures depending on the local health situation. [update]