An aerial view of the Cercle Cité where the Luxembourg has been meeting for sessions since 17 April. The large room gives more space for MPs to respect social distancing rules. Chamber of Deputies

An aerial view of the Cercle Cité where the Luxembourg has been meeting for sessions since 17 April. The large room gives more space for MPs to respect social distancing rules. Chamber of Deputies

The state guarantee covers 85% of the share of eligible loans, with 15% to be guaranteed by banks. Some six banks are involved in the agreement, which covers loan applications from 18 March to 31 December 2020. Upon receipt of applications, files are transferred to the state treasury for processing. Banks are free to grant the interest rates they deem appropriate.

The guarantees do not cover companies whose main activity involves the promotion, holding, renting and trading of real estate and financial holding companies. The bill includes a clause that would allow the government to take one or more loans totaling €3bn. A parliament statement said this was to handle expenses relate to the crisis, such as short-time working, leave for family reasons.

The vote and discussions were held in the Cercle Cité, the temporary new location for parliament, chosen to allow sufficient space between MPs. The bill passed with 58 votes in favour and 2 abstentions from the déi Lénk deputies.