The state treasury published its first report on the Covid loans scheme, which was put in place to support businesses through the pandemic.

The government developed the scheme in April 2020, in collaboration with eight banks - BCEE, BIL, Banque de Luxembourg, Banque Raiffeisen, BGL BNP Paribas, ING, Bank of China and Banque BCP - to help businesses affected by coronavirus to weather the crisis.

During the first three months of its implementation, 222 loans were granted, to the tune of 95.6 million euros. When the sign-up period ended on 31 December 2021, 415 loans had been granted, for a total amount of €194 million.

The scheme saw a majority of sign-ups in spring 2020, primarily from the Horesca sector. Applications have since tailed off, with just ten loans granted in the last quarter of 2021. The commerce sector made up the majority of applications (26.75%), while hospitality made up 19.04% and construction 18.07%.

Businesses will have six years to pay back the loans provided.

Alongside the state-guaranteed loan, banks have also granted around 500 normal loans in relation to the Covid crisis, amounting to around 300 million euros.

Minister of Finance Yuriko Backes thanked the banks and associations involved in the scheme for showing solidarity during the crisis and allowing businesses to continue during a difficult period.