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Luxembourg's Ministry of Finance and the Ministry of the Economy, together with the national credit and investment institution SNCI (Société Nationale de Crédit et d'Investissement), have announced that the SNCI is offering a new financing instrument for companies in the construction, structural work, technical equipment and finishing sectors in crisis situations.

Given the current difficult ("crisis") situation in the construction sector, the SNCI is supplementing its range of financing instruments. In cooperation with its partner banks, it now offers the possibility of financing for the exceptional needs linked to this crisis situation of construction, structural work, technical equipment and finishing companies.

The SNCI will be able to finance up to 80% of the overall needs of such companies, provided that the balance of 20% is financed by the intermediary bank. The total envelope retained for this purpose by the SNCI Board of Directors at its last meeting was €100 million, corresponding to a total leverage effect of nearly €125 million, including bank co-financing.

The maximum duration of the loan is five years with an initial grace period on capital repayment of up to two years. Early repayment without penalties is possible. This aims to give maximum flexibility to business owners in managing their cash flow at a time when they need it most.

The instrument is aimed at Luxembourg companies (with a valid business permit) whose activities fall directly into the aforementioned sectors, with a view to financing an exceptional and temporary need arising from the current crisis affecting the sector. Neither companies / groups of companies directly or indirectly carrying out real estate development activity nor real estate agencies are eligible.

In order to simplify administrative procedures for the company concerned, financing is done indirectly through the customer's usual bank. Requests must be submitted to the SNCI by 30 June 2024 via one of its partner banks. More detailed information is available online at

Vincent Thurmes, President of the SNCI, thanked the SNCI's partner banks for their willingness to work together with the national credit and investment institution in this difficult context.

Luxembourg's Minister of Finance, Yuriko Backes, said: "This financing facility set up by the SNCI complements the package of measures to support the construction trades and access to housing presented in June. It is important to me to provide solid support to the construction sector in the face of current challenges and to help the companies concerned navigate through this difficult period and maintain their jobs. The action of the SNCI and its partner banks is a new illustration of the essential role that a solid financial centre can play as a solution, in the context of crises affecting the country's economy."

Luxembourg's Minister of the Economy, Franz Fayot, commented: "Through the establishment of this financing possibility, the SNCI strengthens the already existing system of government measures in favor of the construction trades and access to housing which suffer from a significant slowdown in their activity. As an important national player supporting businesses, the SNCI thus fully plays its role as a public bank serving the Luxembourg economy."

Tom Oberweis, President of the Chamber of Skilled Trades and Crafts, added: "Due to rising mortgage costs and interest rates, resulting in lower current and future demand, the construction sector is under severe strain . The breath of fresh air proposed by the SNCI is likely to enable craft SMEs to weather the very difficult economic context."

The SNCI is a public-law banking institution specialised in medium- and long-term financing of Luxembourg-based companies. It grants investment loans, project financing and creation-transmission loans to newly created or acquired SMEs as well as financing abroad to Luxembourg companies wishing to develop on foreign markets.