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Luxembourg extends economic help as Covid fight progresses

Luxembourg extends economic help as Covid fight progresses

by Yannick LAMBERT 30.06.2021 From our online archive
The state guarantees bank loans to companies up to a maximum of €2.5 billion over a period of up to six years
A BioNTech/Pfizer vaccine vial
A BioNTech/Pfizer vaccine vial
Photo credit: David Young/dpa

Luxembourg will extend its guarantees for bank loans to companies for up to €2.5 billion until the end of year to help the economy weather the effects of the pandemic as the country opens up, the government said on Wednesday.

Through this scheme, first announced in March 2020 to help stabilise the economy when Luxembourg entered its first lockdown, the state gives loans to companies over a maximum six-year period, capped at €2.5 billion.

Within the scheme, Luxembourg firms have taken out loans amounting to €186.6 million, of which the state guarantees €158.6 million, or 85%.

During the acute phase of the crisis, banks also allowed companies to delay debt repayment of a cumulative value of around €4.5 billion until the end of 2020.

The news comes as Luxembourg also extends its remote working scheme for cross-border workers living in Germany, allowing them to work from their homes until the end of the year without being taxed there and in Luxembourg. Similar agreements were struck with France and Belgium earlier this month.

The Grand Duchy is progressing in its vaccination campaign as currently five people are hospitalised with Covid-19, of which one is in intensive care. The last death was recorded almost a month ago, on 1 June, and the death toll now stands at 818.

The country of 630,000 people has so far administered 535,000 doses, of which 335,000 are first doses. More than 238,000 people, more than a third of the population, are considered fully vaccinated due to two doses or the single dose Johnson&Johnson vaccine.

Contaminations in Europe are on the rise, with currently 56,800 new cases per day, a 21% increase compared to a week ago, partly fuelled by the highly transmissible Delta variant.

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