Article Post on 20 April 2020

Luxembourg Commercial Banks Moratorium

_Six Luxembourg commercial banks (BCEE, BGL BNP Paribas, BIL, Banque de Luxembourg, ING and Raiffeisen) in coordination with the ABBL have implemented measures in order to support the economy and their professional clients in the context of the current COVID-19 crisis.

The professionals may apply for a moratorium on business loans granted to Luxembourg companies before 18 March 2020. The maximum duration of the moratorium is 6 months and the moratorium must take effect before the 30 June 2020.

Are eligible non-financial companies, self-employed, agricultural companies and non-profit associations, based in Luxembourg, where they are in current business relation with a participating bank and that the COVID-19 pandemic has a negative impact on their short term liquidity.

The request may concern any loan or leasing transaction. Albeit, are excluded loans in connection with which, on 18 March 2020, repayment difficulties were already noted and  loans granted to property developers for the purchase, the sale or the development phases.

This regime complements the new guarantee scheme in favour Luxembourg economy established in the context of the current COVID-19 pandemic.

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