COVID-19: Banks commit to support Luxembourg Companies
The coronavirus crisis has serious consequences for the economy of our country. In this context, ING as well as 5 other banks in Luxembourg have taken the initiative to provide financial support to their professional customers exposed to cash flow difficulties resulting from the current crisis. A moratorium on loans granted to Luxembourg companies before March 18, 2020 can therefore be requested, for a maximum of six months.
The memorandum of understanding signed today between the participating banks under the coordination of the ABBL confirms this commitment.
1) What is covered?
Any eligible customer (see below) can postpone the repayment of a loan (principal and interests) or a lease in place before March 18, 2020, for a period of max. 6 months.
2) Who can benefit?
Non-financial companies, the self-employed, agricultural companies and non-profit associations
3 conditions must be fulfilled:
- The company is based in Luxembourg.
- The company has a business relationship with a participating bank on the day of the request.
- The coronavirus crisis has negative repercussions on the company's short-term liquidity situation.
The existence of negative repercussions will be assessed by the bank on the basis of the evidence produced by the client.
3) What type of loans are concerned?
Any loan or leasing transaction within the meaning of Luxembourg legislation applicable to the financial sector.
The following are however excluded:
- loans in connection with which, on March 18, 2020, repayment difficulties were already noted;
- loans granted to property developers for the purchase / sale / development phases.
4) What are the deadlines?
The moratorium is granted for a maximum of six months and must take effect before September 30, 2020*.
In practice, anyone who thinks they meet the conditions to be able to request a moratorium is invited to contact their bank.
For new loans granted after March 18, 2020 and for a maximum duration of 6 years, a state guarantee system has been developed in collaboration with the government.
For more information, see: https://www.abbl.lu/2020/04/17/covid-19-banks-commit-to-support-luxembourg-companies/
* According to an extension implemented in June 2020
Operating in the Grand Duchy of Luxembourg since 1960, ING is a universal and accessible bank with well-developed and user-friendly digital channels, appreciated by our retail, private and wholesale banking customer base, as well as a more personal contact through our network of branches. With over 100,000 customers, ING is one of Luxembourg’s top 5 banks and one of the country’s top 10 brands (source: 2018 KPMG Luxembourg Customer Experience Excellence Report).
Our aim is to empower people to stay a step ahead in life and in business. We believe the role of a financial institution is to support and promote economic, social and environmental progress at the same time as it generates healthy returns for shareholders.
Always at the cutting edge as regards digitisation, we were the first high-street bank to launch an online account in Luxembourg. With over 800 employees in the Grand Duchy (700 of whom are at our head office: ING Lux House) and thanks to the combination of our local presence and the strength of a robust multinational like ING, we offer our personal and business customers a wide range of solutions through the channel of their choice.
For more information, please contact:
ING LU Press Office
Place de la Gare, 26
T: + 352 44 99 1 – E: email@example.com