The Société Nationale de Crédit et d’Investissement (SNCI) is a public banking institution specialising in medium and long-term financing for Luxembourg companies.
In the context of the current economic crisis, it has implemented a number of measures aimed at easing the repayment terms of all its loans and credits.
As a result, as announced by the Minister of the Economy Franz Fayot on Wednesday 25 March, the SNCI has decided to suspend, for payments due on 31/03/2020 and 30/06/2020, the repayment of capital for all its direct and indirect loans.
The duration of all loans for which such a moratorium has been put in place has been automatically extended by 6 months.
Special anti-crisis financing
In addition, the Board of Directors of the SNCI has announced the implementation of a “Special Anti-Crisis Financing – SACF”, for a maximum total amount of 400 million euros. This corresponds to a total leverage effect of nearly 700 million euros, including bank financing.
This SACF is aimed at Luxembourg SMEs and large companies with a view to financing any exceptional needs that have arisen in light of the COVID-19 crisis, for financing decisions taken until 31.12.2020.
This is indirect financing through the applicant company’s usual bank: the SNCI finances up to 60% of the required amount, up to a maximum of 10 million euros, provided that the bank finances 40%.
“These support measures have never existed in this form until now,” explained Minister Fayot. “This is a real paradigm shift: never before in its history has the SNCI addressed companies directly in this way. That’s what it’s doing now.”
Photo: SIP / Julien Warnand