Luxembourg has a playing card in credit
When we talk about credit, many of us immediately think of mortgage credit having paid for their house or apartment, consumer credit having financed their vehicle or the furniture in their living room, or even credit allowing their children to follow superior Studies.
Credit also allows our businesses, large and small, to finance their launch, their day-to-day operations, as well as their development and expansion.
Luxembourg, as an outward-looking financial center, has a key role to play in international credit, whether for individuals or businesses. Whereas, for individuals, banks provide a large part of the credits, concerning credits to businesses, alongside banks, there are more and more alternative credit providers, such as investment funds, private equities, lending platforms, among others. In this context, eligible Luxembourgers have clearly understood the importance for the financial center of having an attractive, flexible, but also secure legislative and regulatory framework, in order to enable Luxembourg professionals to play a leading role in the international finance. And for national and global companies to obtain the financing necessary for the development of their activities.
Otherwise, one could not imagine either the realization of major real estate projects, whether in Luxembourg or abroad, in which Luxembourg lenders or borrowers are involved, nor the development of exploration or exploitation of resources, for the moment exclusively located on planet Earth, and, perhaps, in the near future, in space. To date, Luxembourg is in a good position in the field of international credit thanks to its predictable and flexible legislation for lenders, in particular by the timely transposition of the European directive on financial guarantees or by the introduction of the professional guarantee of payment. Luxembourg also has efficient and safe securitization legislation that allows the risk of loans granted to be transferred to the financial markets, so that the loans can continue to finance companies and the economy. Humanity having to turn by necessity towards an ecologically and socially sustainable economy, international credit is no exception to this trend. Luxembourg has a good card to play in this area.
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This article was written for the magazine edition of
Paperjam of the month June 2022
released May 25, 2022. Magazine content is produced exclusively for the magazine. It is posted on the site to contribute to the complete Paperjam archive.
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