In the context of the coronavirus COVID-19, ODL has implemented the following measures to strengthen its support to Luxembourg companies:
– increase of the percentage of cover of limits and contracts issued during the state of crisis in the context of export insurance;
– collaboration with the Mutualité de Cautionnement with the establishment of insurance for guarantees issued by the Mutualité, allowing them to increase their loan capacity;
– flexibilisation of the “Bank loans insurance” which allows banks to partially reduce the risk of non-repayment of the loans they grant to Luxembourg exporters for the development of their international activities. In this context, ODL will also soften the conditions applicable to this product, in particular by increasing the percentage of insurance and by broadening the definition of eligible bank loans;
– increase of the percentage of the insurance product for bank guarantees which is aimed at banks of Luxembourg exporters to ensure the guarantee line granted by the bank and inclusion of import guarantees in the field of insurance application;
– reduction of the claim period which will allow companies to be compensated more quickly in the event of a claim;
– reduction of the reimbursement delay for invoices paid in the context of financial support.
– reinsurance program of the private credit insurers: Under this reinsurance program, the credit insurers undertake to keep the credit limits that were actually used in the 12 months preceding 1 March 2020 as intact as possible until the end of 2020. In this way, commercial relations and trade flows can be maintained. In exchange for this commitment, ODL, acting on behalf of the State, undertakes to reinsure the risks underwritten by the credit insurers.
This program has been approved by the European Commission until 31 December 2020.
The extension until 30 June 2021 of the program has been approved by the Government but is still subject to formal approval by the European Commission.
For any questions or clarification regarding the above measures, the ODL team remains at your disposal.