ING News

Luxembourg, 06/05/2020
Last update: 23/12/2020

Covid-19: Loans guaranteed by the State

The coronavirus crisis has serious consequences for the economy of our country. In this context and in order to support entrepreneurship and Luxembourg trade, ING has cooperated closely with the Ministry of Finance and other Luxembourg banks to set up a state guarantee system for loans granted as of 18 March 2020 to companies affected by the COVID-19 pandemic.

This mechanism complements the support measures for companies taken spontaneously by the banking sector, more particularly a moratorium on existing loans.

The law of 18 April 2020 (in French) specifies the conditions to be fulfilled in order to be able to claim this guarantee by the state.

1) What is the state guarantee?

The state guarantee is a guarantee provided by the state to a bank that grants a loan to a business or professional, despite the current high economic uncertainty. The state guarantee covers a very significant part of the loan.
This loan remains a loan from a bank to a company: it is not a loan from the state.

The state guarantee is remunerated according to a scale which depends on the size of the company and the duration of the guaranteed loan. This guarantee commission, collected by the State Treasury from the lending institution, is borne by the borrower.

2) Which companies are eligible?

Companies, legal or natural, established in Luxembourg and who are suffering from temporary financial difficulties following the COVID-19 pandemic. The full list can be found here.

3) What loans are eligible?

Loans, lines of credit, investment loans or overdraft facilities that have the following characteristics are eligible:

  • A maximum duration of 6 years
  • Granted between 18 March 2020 and 30 June 2021, and
  • Granted to deal with a temporary financial difficulty following the COVID-19 pandemic.

4) What is the maximum guaranteed amount?

The same company can only benefit from loans covered by the state guarantee for a maximum amount of:

  • 25% of the turnover achieved in 2019 or, where applicable, the last year available
  • For young, innovative companies created before 31 December 2019, double the total payroll for 2019 or, if applicable, the last year available
  • For young, innovative companies created after 31 December 2019, the estimated annual salary cost for the first two years of activity.

In the event that several loans are granted to the same company, the state guarantee is acquired in the chronological order in which these loans are granted, and provided that their cumulative amount remains below the authorised ceiling.

The state guarantee covers a percentage of the amount of capital, interest and accessories. This percentage is set at 85%, the balance of 15% being borne by the credit institution. The amount to be compensated corresponds to the loss recognised.

In practice: anyone who thinks they can meet the conditions to be able to apply for a government guaranteed loan is invited to contact ING. This can be done by appointment, via digital channels (, chat, mobile application) or by phone. Documentary evidence will be requested in order to comply with the request.
For bank loans granted before 18 March 2020, a moratorium of up to six months may be granted by participating banks under conditions approved by them.

ING profile

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
L-1616 Luxembourg
T: + 352 44 99 1 – E:

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