Under the Temporary Crisis Framework--adopted in March 2022 in light of the Russian war on Ukraine--European member states may use flexibility foreseen under state aid rules to support their economy, avoiding an impact on the single market, as the commission explains.

Through this framework, Luxembourg companies of all sizes and sectors--aside from the financial centre--will be eligible for loans of up to six years. These loans will be covered by a state guarantee not exceeding 90% of the loan.

Businesses may also not receive a loan higher than 15% of their average total annual turnover. As soaring energy prices heavily impact companies and their products, beneficiaries may receive a loan worth 50% of energy costs incurred by a company over a 12-month period.

“In light of the high degree of economic uncertainty caused by the current geopolitical situation, the scheme is aimed at ensuring that sufficient liquidity is available for the companies in need through the granting of a state guarantee on new loans to companies by enabling banks to continue lending to the real economy,” the European Commission said in a press release.

Agriculture, fisheries and aquaculture businesses may receive up to €35,000 under this framework, while all other sectors could get up to €400,000, on top of energy aid.

The commission in its statement underlined that Russian-controlled entities “will be excluded from the scope of these measures.”