Luxembourg will not extend its sovereign loan to Israel, Finance Minister Gilles Roth confirmed on Tuesday.
The decision ends speculation that the Grand Duchy might renew the facility, which has faced mounting scrutiny amid the ongoing conflict in Gaza.
Roth made the statement during a broadcast interview, addressing questions about Luxembourg's role in facilitating Israeli financing.
The refusal to extend the loan marks a shift in the country's approach to the instrument, which has been a focal point for activists and lawmakers questioning the neutrality of European financial intermediaries.
The move comes as pressure intensifies on European institutions involved in Israeli debt markets.
Ireland's Central Bank Governor recently defended the legality of its management of similar Israeli war bonds, asserting that all actions were lawful.