17 July 2020

New Professional Payment Guarantee

The law on professional payment guarantees dated 10 July 2020 (the “Professional Guarantee Law”) entered into force on 17 July 2020:

  • The Professional Guarantee Law introduced a new type of flexible guarantee of payment (the “Professional Guarantee”).
  • The new regime has two key principles: (i) contractual freedom and (ii) legal certainty.
  • Parties may freely negotiate the terms of the Professional Guarantee.
  • Parties have to expressly opt for the new regime.
  • The Professional Guarantee is particularly useful for syndicated loans, synthetic securitisations, international capital markets transactions and credit enhancement schemes.


Press contact
Beate Dünschede
+352 271802-29


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Contact person

Andreas Heinzmann, LL.M. eur.


+352 271802-30


Valerio Scollo, LL.M. (NYU), LL.M. (NUS)


+352 271802-32


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