Written by Tracy Heindrichs
Published on 29.08.2022 • Edited on 29.08.2022 at 13:24
The loan helped rebuild the grand duchy after the war and contributed to the steel industry that would enrich Luxembourg’s economy. Matic Zorman
On 28 August 1947, the World Bank loaned $12m to the grand duchy– equivalent to more or less $155m or €152m today–helping the country lay the foundations for its steel industry, as the government remembers on the loan’s 75th anniversary.
Luxembourg, in the aftermath of the second World War, received $12m–the only loan the country has received from the IBRD (International Bank for Reconstruction and Development)–which it invested in railways and equipment for the steel industry. Paying the loan off by 1974, the grand duchy later became one of the IBRD’s 189 member states.
“Thanks to the economic boom, Luxembourg, a founding member of the European Union, while remaining a major steel producing country, has diversified its economy, and today hosts one of the world's leading financial centres with a strong focus on green, social and sustainable bonds and the second largest fund centre in the world after the US," Luxembourg finance minister and the country’s world bank governor 
The IBRD is the largest development bank in the world, supporting the World Bank Group’s missions. Since 1944, it helps middle-income and creditworthy low-income countries by providing loans, guarantees, risk management products and advisory services. Most of its funds come from global financial markets. In 2018, Luxembourg renewed an agreement through which it would allocate €7m in investments until 2022.