Luxembourg
Measures taken in response to coronavirus (COVID-19) pandemic
Adoption date |
Type of measure |
Beneficiaries' sector specification |
Description of measure |
26/03/2020 |
Public loans |
All non-financial sector |
The SNCI has put in place a “Special Anti-Crisis Financing – SACF”, for a maximum total amount of EUR 400 millions corresponding to a total leverage effect of nearly EUR 700 millions, including bank financing. This financing instrument is aimed at Luxembourg SMEs and large companies. This is indirect financing via the client’s usual bank: the SNCI finances up to 60 % of the required amount, provided that the bank finances 40 %. The amount of SACF (financed by the SNCI) can vary between EUR 12,500 and EUR 10 millions. The maximum duration of the SACF is 5 years with an initial grace period on the repayment of the capital of maximum 2 years. |
18/04/2020 |
Public guarantees |
Non-financial corporations |
State guarantee scheme for new bank loans over a maximum period of 6 years (Loi du 18 avril 2020 visant à mettre en place un régime de garantie en faveur de l’économie luxembourgeoise dans le cadre de la pandémie Covid-19):The new credit lines will be guaranteed at 85% by the State (for a total amount of 2.5 billion euros) and 15% by the participating banks, and this for loans granted in the period from March 18, 2020 until June 30, 2021. They are understood as a subsidiary tool, after recourse, where possible, to the tools of the National Credit and Investment Company (SNCI), the Office du Ducroire or the European Investment Bank in particular. The benefit of the new credits is reserved for companies that were viable before March 18, 2020 (state of emergency). |
03/04/2020 |
Public loans |
Non-financial corporations |
Law establishing a system of financial support for the companies in temporary financial difficulty (Loi du 3 avril 2020 relative à la mise en place d’un régime d’aides en faveur des entreprises en difficulté financière temporaire): 1. the business must fall within one of the sectors of activities set out in the relevant Grand Ducal regulation. A business which carries out activities in more than one sector is eligible only for the activities referred to in the aforementioned Regulation. The sole main NACE code of an undertaking is therefore not decisive in determining its eligibility; |
16/03/2020 |
Direct grants |
All non-financial sector |
Repayment for partial unemployment in situations of force majeure provides that 80% of costs can be refunded from the Employment Fund relating to the unemployment hours. There are limits in terms of salary level (250% of minimum social salary for unskilled employees) and duration (1022 hours maximum annually per employee). This applies to all economic sectors as long as the causes invoked are directly linked to the Coronavirus. |
16/03/2020 |
Public guarantees |
Non-financial corporations |
Bank guarantee for companies with cash-flow difficulties: The measure is the setting up of a specific surety in the form of a guarantee that the Chamber of Commerce offers via its Mutualité de Cautionnement to companies that need credit or a bank loan. This guarantee will be up to 50% of the credit and covers a maximum amount of EUR 250,000 per guarantee. In order to guarantee rapid assistance to companies that request it, a procedure for analysing files within 48 hours has been put in place. |
05/05/2020 |
Public guarantees |
Non-financial corporations |
"SME guarantees" in collaboration with banks active in corporate finance: Provide guarantees for SMEs obtaining new working capital lines from banks |
17/04/2020 |
Private moratoria |
All non-financial sector |
Based on a memorandum of understanding expiring on 31/12/2020, certain participating banks grant moratoria on the repayment of existing loans. Banks in Luxembourg postpone the reimbursement of some credits to allow these debtors to better cope with liquidity difficulties. |
01/01/2021 |
Private moratoria |
All non-financial sector |
Moratoria granted by certain banks on repayment of existing loans. This new measure should be seen as a continuation of the moratoria under LU-037, which were based on a memorandum of understanding between certain participating banks. This MoU expired on 31/12/2020, such that any payment moratorium granted after this date no longer benefits from the flexibility introduced by the EBA guideline EBA/GL/2020/02 with respect to the credit risk assessment as well as the stage migration under IFRS9 and associated provisioning. |
13/12/2021 |
Direct grants |
All non-financial sector |
Repayment for partial unemployment in situations of force majeure provides that 80% of costs can be refunded from the Employment Fund relating to the unemployment hours. There are limits in terms of salary level (250% of minimum social salary for unskilled employees) and duration (1022 hours maximum annually per employee). This applies to all economic sectors as long as the causes invoked are directly linked to the Coronavirus. On 28 December 2021, it was decided that companies in the hospitality sector (cafés, restaurants, bars, discotheques, short-term accommodation facilities, etc.) and the events sector (cinemas, congresses, trade fairs, etc.) must close by 11 p.m. until 28 February 2022 inclusive. Companies affected by this measure can submit, until January 7, 2022 included, a request to retroactively benefit from partial unemployment for the months of December 2021 and January 2022. |
20/03/2020 |
Other measure |
Banking sector |
The CSSF endorses the EBA Statement on the application of the prudential framework regarding Default, Forbearance and IFRS9. This statement emphasizes that moratoria will not trigger an automatic classification in default, forborne, or IFRS9 status. |
30/07/2020 |
Dividend distribution policy |
Banking sector |
The CSSF updated its FAQ and sent a Circular letter to supervised entities in order to inform that it intends to comply with the ECB Recommendation on dividend distributions during the COVID-19 pandemic (ECB/2020/62) published on 15 December 2020 which repeals Recommendation ECB/2020/35 and with the ESRB Recommendation on restriction of distributions during the COVID-19 pandemic (ESRB/2020/15) published on 18 December 2020 which amends ESRB Recommendation 2020/7. The CSSF also endorses the latest EBA Statement on banks’ distribution policies published on 15 December 2020 |
02/04/2020 |
Reporting requirements |
Fund industry |
In accordance with the ESMA statement dated 31 March 2020, managers of Luxembourg domiciled MMFs may postpone the submission of the quarterly reportings for Q1 and Q2 2020 to September 2020. |
07/04/2020 |
Other measure |
Fund industry |
1. The UCIs can increase the swing factor to be applied on the NAV up to the maximum level laid down in the prospectus without prior notification to the CSSF. 3. The CSSF permits on a temporary basis the Board of Directors of the UCI or, if applicable, the Management Company, given the current exceptional market circumstances, to increase the swing factor beyond the maximum level mentioned in the prospectus even where the fund prospectus does not formally offers the possibility for this, under certain conditions. |
09/04/2020 |
Reporting requirements |
Fund industry |
Implementation of a newly weekly reporting for investment fund managers (IFMs) to report on financial data and governance arrangements. |
14/04/2020 |
Other measure |
Banking sector |
The CSSF published an FAQ that describes the flexibility allowed by the IFRS 9 accounting framework to address the temporal impact of adverse economic conditions linked to the COVID-19 pandemic. It reflects the statements and guidance issued by European and international bodies and covers two points: 2) Transitional arrangements. |
14/04/2020 |
Reporting requirements |
Fund industry |
In accordance with the ESMA statement dated 9 April 2020, investment fund managers which anticipate that the annual and half-yearly reports will be published beyond the regulatory deadlines, must inform the CSSF and their investors promptly indicating the reasons for the delay and, to the extent possible, the estimated date of publication. |
16/04/2020 |
Other measure |
Fund industry |
The CSSF published four FAQs providing clarifications on passive and active investment breaches as a result of the increase in volatility of financial markets. |
23/03/2020 |
Other measure |
All financial sectors |
Supervised entities may opt for cloud-based tools and solutions without prior official authorisation by or notification to the CSSF. |
26/03/2020 |
Reporting requirements |
Fund industry |
Implementation of a newly daily reporting for investment fund managers (IFMs) of a sample of large money market funds (TNA, flows and risk indicators) |
27/03/2020 |
Reporting requirements |
Securities and markets |
The CSSF will not take any administrative measures or sanctions in relation to issuers’ failure to comply with deadlines for the publication of periodic information (i.e. notably annual and half-yearly financial reports required under the Transparency Directive). Issuers are granted additional two months for reporting periods ending on 31 December 2019 or after that date but before 1 April 2020. |
30/03/2020 |
Reporting requirements |
All financial sectors |
The CSSF decided that the reporting deadlines for supervised entities may, where necessary, be exceptionally extended, upon reasoned request. With regard to long form reports, the CSSF announced the possibility to extend the submission deadline up to four months and announced it will refrain from applying enforcement measures in the case of deadlines justified by operational difficulties related to the current context of Covid-19. |
30/04/2020 |
Other measure |
Banking sector |
The CSSF adopts the EBA Guidelines on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 crisis. Consequently, the CSSF has integrated the Guidelines into its administrative practice and regulatory approach with a view to promote supervisory convergence in this field at European level. All entities that have adhered to general payment moratoria that are effectively in place by 30 June 2020 and that are willing to benefit from the EBA/GL/2020/02 shall duly comply with them. |
24/04/2020 |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
As of April 24, 2020, additional measures to support micro-enterprises with up to 10 employees have been implemented. This support is aimed at micro-businesses: - who have not been (or are no longer) subject to a closure or cessation of activity, but who have suffered a significant loss of turnover due to the pandemic. For these micro-enterprises, an emergency compensation amounting to 5,000 euros has been put in place. |
24/04/2020 |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
As of April 24, 2020, a financial assistance shceme has been implemented for companies that employ between 10 and 20 employees, and which, like micro-enterprises, are particularly affected by the Covid pandemic, if they had to close their establishments or cease their activities in mid-March and were not authorized to resume them until April 24, 2020. |
08/04/2020 |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
Emergency allowance fund of EUR 2,500 per self-employed worker (Règlement N° 261 du 08 avril 2020 ayant pour objet la mise en place d’une indemnité d’urgence certifiée en faveur des travailleurs indépendants dans le cadre de la pandémie Covid-19): This financial aid, which is non-taxable and non-repayable, is aimed at financially supporting the self-employed, provided they meet certain conditions. |
16/03/2020 |
Tax deferrals (w/o fin. stab. relevance) |
All non-financial sector |
Indirect taxes: Administrative tolerance for VAT returns, i.e. there is no administrative penalty for exceeding a deadline for filing VAT returns. This tolerance applies until otherwise indicated by the administration. |
16/03/2020 |
Tax reliefs (w/o fin. stab. relevance) |
All non-financial sector |
Indirect taxes: The Luxembourg VAT Authority will automatically reimburse all the credit balances in terms of VAT that amount to EUR 10,000 or less. |
16/03/2020 |
Direct grants (w/o fin. stab. relevance) |
Households |
Liquidation of advance payments for extraordinary leave for family reasons: The Joint Social Security Centre (CCSS) will proceed with the liquidation of an advance on the financial compensation for the extraordinary leave for family reasons granted to parents of children affected by the temporary closures of basic and secondary education establishments, vocational training and childcare facilities, etc. |
16/03/2020 |
Public support for trade credit insurance (w/o fin. stab. relevance) |
Non-financial corporations |
Reinforcement of aid measures for export and international development: ODL has implemented several measures to strengthen its support to Luxembourg companies, such as increase of the percentage of cover of limits and contracts issued during the state of crisis in the context of export insurance etc. |
17/03/2020 |
Tax deferrals (w/o fin. stab. relevance) |
All non-financial sector |
1. Direct taxes: Cancellation of the advance payments due for the first semester of 2020 2. Direct taxes: 4-month extension of the tax payment deadline. In addition to the above, the same persons can request a 4-month extension of the payment deadline for taxes due after 29 February 2020. |
25/03/2020 |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
Emergency fund for very small companies and self-employed persons (Règlement N° 187 du 25 mars 2020): With this aid measure, businesses with 9 employees at the most and self-employed persons who have a valid business permit issued before 18 March 2020 (with an annual turnover of at least EUR 15,000 and whose activity had to be interrupted following the entry into force of the Grand Ducal regulation of 18 March 2020 introducing a series of measures in the fight against Covid-19) can apply for an immediate and non-refundable financial aid of EUR 5,000. |
25/03/2020 |
Public moratoria (w/o fin. stab. relevance) |
Non-financial corporations |
Easing of reimbursement conditions on all its existing loans: SNCI decided to suspend the reimbursement of capital for the quarterly terms of March 31st, and June 30th of all its outstanding direct and indirect loans. No action from clients is required. The duration of all loans benefitting from said moratorium is automatically prolonged for 6 months. |
N/A |
Public guarantees (w/o fin. stab. relevance) |
Non-financial corporations |
Funding over 5 years in favor of the mutual insurance fund for small and medium-sized businesses and the guarantee mutual insurance fund: Enabling the mutual funds of professional chambers to extend the guarantees provided to SMEs |
16/03/2020 |
Other labour market measure |
All non-financial sector |
Temporary measures concerning social security contributions: The Joint Social Security Centre (CCSS) and the Minister of Social Security have taken a series of measures to support companies and the self-employed by offering them greater flexibility in their management of the payment of social security contributions. |
18/03/2020 |
Other measure |
All non-financial sector |
Grant additional social aid; guarantee subsidies for cancelled projects and grant short-time work benefits to employees in the sector |
26/03/2020 |
Other measure |
Non-financial corporations |
Suspension of the obligation to confess cessation of payment resulting in bankruptcy |
26/03/2020 |
Exemption from penalties/fines |
All non-financial sector |
Suspension of the forced execution of the evictions ordered for residential leases as well as those ordered in terms of commercial lease |
19/03/2020 |
Tax deferrals (w/o fin. stab. relevance) |
All non-financial sector |
Provide flexibility to companies in cash management and payment of social security contributions, e.g. by temporarily suspending the calculation of default interest for late payments |
19/12/2020 |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
In view of the direct and indirect economic impact of the new restrictive measures, the government has decided to extend the benefit of the State's temporary contribution to the uncovered costs of certain companies provided for by the law of December 19, 2020 to companies in the retail in-store sector and related sectors, such as the personal care sector. The aid for costs not covered was initially aimed at the tourism, hospitality, events, culture, entertainment and managers of continuing vocational training organizations. It will be allocated in the form of monthly capital grants calculated on the basis of uncovered costs to companies which, during all or part of the period between November 1, 2020 and March 30, 2021, will have suffered a loss of monthly turnover of at least 40% compared to the corresponding month of 2019. The maximum aid intensity is 70% of eligible uncovered costs for medium and large enterprises and 90% of eligible uncovered costs for micro and small enterprises. In addition, the amount of aid may not exceed EUR 20,000 per month for a microenterprise, EUR 100,000 per month for a small enterprise and EUR 200,000 per month for a medium and large enterprise. |
04/12/2020 |
Other measure |
Banking sector |
The CSSF authorises LSIs placed under its central banks of the Eurosystem referred to in Article 500b(1)(b) CRR as specified by the aforementioned |
01/02/2021 |
Direct grants (w/o fin. stab. relevance) |
All non-financial sector |
The financial aid is in the form of a single flat-rate cash payment whose amount varies (EUR 3,000, EUR 3,500 or EUR 4,000) depending on the income bracket of the person concerned. It is only available to people, whose main activity is as a self-employed person; and who are registered as such with the Luxembourg social security scheme. |
N/A |
Other measure |
Non-financial corporations |
The Ministry of Economy decided to increase the maximum co-financing rate from 50% to 70% for any financial aid to the young innovative enterprises granted. Specifically, eligible companies must meet the two following conditions: (i) They should be unlisted companies or private research organisations, which have not taken the activity from other businesses, were registered no more than five years ago, have not yet distributed profits, and have not been formed through merger. (ii) They should be innovative enterprises demonstrating the development of new and improved products in the future, while also having research & development expenses that represent at least 10% of the total operating costs during one of the last three years or in the current fiscal year in the case of young innovative enterprises with no financial history. Based on the eligible costs of the project, the amount of the aid may not exceed EUR 800,000 for small enterprise or small private research organisation and EUR 1,200,000 for small enterprise or small private research organisation established in an assisted area (i.e. Dudelange, Bettembourg, Wiltz, Winseler, Kiischpelt). |
N/A |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
Grant self-employed people (regardless of the number of their employees) a direct aid in the amount of EUR 3,000, 3,500 or 4,000 depending on the income level of the person concerned |
24/07/2020 |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
A recovery and solidarity fund for businesses was set up for a period of 6 months, starting on July 1st 2020, to offer businesses in the Horeca, events (including cultural) sectors, the tourism sector as well as physical culture centers, a direct monthly aid. With the law of 19 December 2020, the list of eligible sectors was extended to SMEs and organisations of professional education. It takes the form of monthly capital grants and covers a four-month period from December 2020 to March 2021. It is linked to the condition that the company has suffered a loss in monthly turnover of at least 25% and is calculated on the basis of the number of employees and self-employed workers in the company. The amount of the subsidy is 1,250 euros per self-employed person and per employee in activity during the month for which the aid is requested, respectively 250 euros per employee who is fully short-time working during the month for which the aid is requested. In December 2021, the aid was extended until February 2022. |
24/07/2020 |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
In order to support the retail trade in stores with reception of the public (excluding food) as well as the personal care sector, which were able to resume their activities on May 11th, a new flat-rate aid will be granted over a period of three months up to 1,000 euros per employee in June, 750 euros in July and 500 euros in August, up to a ceiling of 50,000 euros per month. This measure is limited to SMEs (less than 250 employees). |
20/05/2020 |
Direct grants (w/o fin. stab. relevance) |
Households |
Doubling of the amount of the cost-of-living benefit ("Allocation de vie chère") for 2020 to low income households |
19/06/2020 |
Reporting requirements |
Banking sector |
The CSSF decided to postpone the data collection for the remuneration benchmarking exercise at national level by one month. The institutions concerned by this exercise are the same as last year, except for the institutions that have been newly authorised in 2019 which would be included in the scope of the exercise. The CSSF sent a mail inviting all the institutions concerned to provide the relevant data by 30 October at the latest. |
13/05/2020 |
Reporting requirements |
Fund industry |
The CSSF decided that the deadline extensions for the submission of usual closing documents may, where appropriate, be exceptionally granted upon reasoned request to be sent by email to the usual contact person at the CSSF. Nevertheless, submission on time is encouraged, where the submission can be made within the usual time limits without compromising the quality of the submitted documents and in line with the health rules to contain the spread of Covid-19. |
22/07/2020 |
Direct grants (w/o fin. stab. relevance) |
Non-financial corporations |
The investment aid for companies impacted by the crisis COVID-19 was established by the Ministry of Economy. This instrument aims to encourage companies to carry out, despite the current crisis situation, projects of economic development, digitalization or environmental protection through financial aid of up to 50% of eligible costs. |