Optimize assets, liabilities, and liquidity

The COVID-19 pandemic is causing widespread concern and economic hardship for consumers, businesses, and communities across the globe. As the situation is changing quickly with widespread impacts to the financial ecosystem, the crisis raises a number of unique challenges.

Assets managers across the market are endeavoring to stay well ahead of potential demands on their treasury operations with sudden shifts in trading patterns, likely increased redemptions, and a re-doubling of efforts to protect assets and ensure liquidity. Therefore, mechanisms to manage daily liquidity are being put to their highest use.

Deloitte Luxembourg can help you with detailed review of your portfolio as soon as possible to assess how this situation will affect credit quality. While the situation is evolving quickly, you may want to adjust economic scenarios or the associated weighting of such scenarios within your modelling.

Advisory & Consulting

• Valuation, modelling and stress testing
  • Valuation services
  • Liquidity Stress Testing (LST)
    

• Balance sheet simplification
  
  • Strategic balance-sheet management
    
  • Future in the balance? How countries are pursuing an AI advantage
    
• Restructuring/M&A
  • Luxembourg Mergers & Acquisitions services
    
  • Post-merger integration services
    
  • Mergers & Acquisitions advisory
    
  • Strategic growth opportunity
    

Tax

• Deferrals and/or cancellations of tax charges, customs, and/or social security payments
• Public financial aids in Luxembourg and abroad
• Profits repatriation programme
  
• Financing strategies and treasury solutions
  
• Adjust transfer pricing and intragroup support
  
  • Transfer pricing
  • Transfer Pricing Services in Luxembourg
    
• Identify possible Deferred Tax Assets
  
• Tax effects of P/L and B/S adjustments

Audit & Assurance

Subsidies and aides—improving liquidity through government funded programs

While the drastic measures implemented to contain the impact of COVID-19 on public health may put additional pressure on your liquidity, the following government programs may help you recover cost and improve your liquidity:

• INFPC: Subsidy for vocational training
  
  Continuous vocational training legislation enables companies legally based in Luxembourg and with their main business activity within the country to benefit from support in funding their training plans. We can either assist companies in preparing the financial report for submission to the National Institute for the Development of Continuous Vocational Training (INFPC) or certify your compliance with criteria set out by INFPC to help you recover part of your investment in training. Further information can be found via the links in either English or French.

• Ministry of Economy: Subsidy for research and development projects
  
  The Ministry of Economy provides funding to companies investing in research and development projects in order to claim part of their investment. For companies that are eligible for government funding, we can validate the costs incurred in line with the criteria agreed with the Ministry of Economy and issue an agreed-upon procedures report signed by a Réviseur d’Entreprises Agréé to claim part of the investment already at an interim date. You can submit our report to the Ministry to facilitate the review and speed up the process.