Luxembourg's government announced on Tuesday that a €1 billion loan taken out in 2012 has been repaid.

The bond issue was repaid with a 2.25% interest rate, according to the State Treasury.

No new loans had to be taken out to repay the 2012 bond issue.

This puts the current national debt at 17 billion Euro, around 24% of GDP. The repayment now saves the government around 22.5 million euros in interest per year.