As part of an action to support businesses in the context of the Russian invasion of Ukraine, the European Commission has authorised a Luxembourg guarantee scheme worth 500 million euro.
The scheme was approved on the basis of the Temporary Crisis Framework for state aid adopted on 23 March 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (“TFEU”) and recognising that the EU economy is facing a serious disturbance.
The Commission found the Luxembourg scheme to be in line with the conditions set out in the temporary crisis framework: necessary, appropriate and proportionate.
The measure will be open to companies of all sizes and sectors operating in Luxembourg, with the exception of the financial sector. Beneficiaries will be eligible for new loans with a maximum duration of six years which will be covered by a state guarantee not exceeding 90% of the loan amount.