Photo shows the former ArcelorMittal steel site in Dudelange Shutterstock

Photo shows the former ArcelorMittal steel site in Dudelange Shutterstock

The greatest impact could be from the potential hit to the solvency of Liberty Steel which owns a plant in Dudelange employing 250 workers in the Grand Duchy.

The firm has a global payroll of 35,000 working in 40 sites. Liberty is owned by the UK conglomerate GFG Alliance which has reportedly received upwards of $4bn in support from Greensill.

On Sunday, the Luxembourg government pledged to provide the Dudelange site with the necessary financial guarantees to ensure its survival, according to the trade unions OGBL and LCGB.

Nevertheless concerns would remain, as Liberty Steel had said that it had plans to invest €100m in the Dudelange plant, which it acquired from ArcelorMittal last year.

As regards the Luxembourg fund industry, four Credit Suisse funds domiciled here were frozen on Thursday due to their having invested about $100m in Greensill.

The asset manager says the decision to suspend redemptions is related to difficulties in evaluating the holdings of the funds: Credit Suisse (Lux) Multi Strategy Bond Fund, Credit Suisse (Lux) Multi Strategy Alternative Fund, Credit Suisse (Lux) Qatar Enhanced Short Duration Fund and Credit Suisse (Lux) Institutional Target Volatility Fund.