The PPG was intended to compensate for the shortfalls of suretyships and lack of statutory authority for the independent/first demand guarantees, creating a credit-friendly tool complementing well-known Luxembourg financial collateral arrangements. Unfortunately, it appears that the PPG is still rarely used in both national and international transactions. A true let-down for the Luxembourg government.
In this article published by Legal 500 in their In-House Lawyer magazine Summer 2021 edition, our authors re-assess the use of this tool in the current context (Brexit, COVID…) and its benefits for national and international markets.
More particularly, the key points addressed are the following:
- The current situation of the new tool;
- Its benefits and impact on the legal certainty;
- The national and international market conditions;
- Experts’ vision about the future.
To read the full article click here.