Draft bill 7545, which had already been analysed by the responsible commission on Wednesday, was passed on Saturday morning with 58 votes in favour of the law and 2 abstentions. Under the new law, the state will be able to take out loans of up to 3 billion euros during the Covid-19 crisis in order to support the local economy.
Especially companies facing difficulties due to the crisis could benefit from these state guarantees. Companies who were already facing difficulties before the crisis cannot benefit from these aids, however. Since the funds are in part provided by the banks, they require a guarantee that they will be paid back, says the rapporteur of the draft, André Bauler.
85% of the loan is provided by the state, 15% by the banks. So far, 8 banks have confirmed their support. Among them are also 2 banks from China.
According to a statement made by the Minister of the Economy in the Chamber of Deputies, Luxembourg is one of the first countries in Europe to pass such a stability pact, which includes a total of 36 measures.
