Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

EFSF - European Financial Stability Facility : ESM and EFSF announce funding programme for 2013

12/19/2012 | 05:48am US/Eastern

Luxembourg - European Stability Mechanism (ESM) and European Financial Stability Facility (EFSF) today announced their funding programmes for 2013.

In terms of short-term funding, ESM will launch its bill programme in January 2013. It will offer regular bill auctions to be held on Tuesdays, with a new closing time of 12.30 pm, initially focussing on 3-month and 6-month bills. The ESM bill programme will replace the existing EFSF bill programme. EFSF will therefore no longer hold bill auctions and maturing EFSF bills will be financed via long-term funding or through the proceeds of ESM bills.

In terms of long-term funding, EFSF will continue to finance the macroeconomic adjustment programmes for Ireland, Portugal and Greece. In 2013, EFSF is expected to raise between €55 and €60 billion in long-term issuance in order to finance disbursement to these three beneficiary Member States and to finance the rollover of existing maturities.

EFSF funding and lending 2013
(subject to market conditions and requests by beneficiary countries)

in EUR billion Q1 2013 Q2 2013 Q3 2013 Q4 2013 Total 2013
Ireland 1.6 1.4 1.4 1.2 5.6
Portugal 0.8 0 1.9 1.8 4.5
Greece 7.6 3.2 0.6 5.1 16.5
Total Lending Requirements 10.0 4.6 3.9 8.1 26.6
Redemptions (excluding regular bills) 14.85 11.3 - 7.0 33.15
Long-Term Funding Programme        
16.5      
16.5     
13.0      
12.0      
58.0         
Short-Term Funding (end of period) 17.99 17.0 11.0 4.2 -

The first financial assistance was provided by ESM on 13 December when it launched 2 bills and 3 floating rate notes for a total amount of close to €39.5 billion for the recapitalisation of the Spanish banking sector. For 2013, ESM will finance the rollover of the 2 bills mentioned above for an amount of €8.968 billion. The ESM will also be responsible for the financing of future macroeconomic assistance programmes. The ESM bill programme is expected to cover funding needs for the first half of the year with an inaugural bond issuance expected from ESM in the second half.

EFSF funding and lending 2013
(subject to market conditions and requests by beneficiary countries)

in EUR billion Q1 2013 Q2 2013 Q3 2013 Q4 2013 Total 2013
Rollover of existing maturities 2.5 6.468 8.968

Since the creation of the EFSF, the Deutsche Finanzagentur has provided support for all the funding operations of the EFSF. The members of the team have now joined ESM and make up the ESM Funding team. Christophe Frankel, Deputy Managing Director and CFO stated: 'The ESM Funding team, headed by Siegfried Ruhl, comprises highly talented and experienced staff. They will be able to smoothly and efficiently run the funding operations for both EFSF and ESM'.

About ESM

The European Stability Mechanism (ESM) is an inter-governmental institution which was inaugurated on 8 October 2012. Its mandate is to preserve financial stability of Europe's Economic and Monetary Union by providing financial assistance to euro area Member States in difficulty. In order to fulfil its mission, the ESM is authorised to issue bonds or other debt instruments on the market to raise funds needed to provide loans to countries in financial difficulties, intervene in the debt primary and secondary markets, act on the basis of a precautionary programme and finance recapitalisations of financial institutions through loans to governments including in non-programme countries. All financial assistance to Member States is linked to appropriate conditionality.

The shareholders of the ESM are the 17 euro area Member States. It has a total subscribed capital of €700 billion which comprises €80 billion in paid-in capital and €620 billion in committed callable capital. The ESM's effective lending capacity is €500 billion.

About EFSF

The European Financial Stability Facility (EFSF) was incorporated in Luxembourg on 7 June 2010. Its objective is to preserve financial stability of Europe's Economic and Monetary Union by providing financial assistance to euro area Member States in difficulty. In order to fulfil its mission, the EFSF is authorised to issue bonds or other debt instruments on the market to raise funds needed to provide loans to countries in financial difficulties, intervene in the debt primary and secondary markets, act on the basis of a precautionary programme and finance recapitalisations of financial institutions through loans to governments including in non-programme countries. All financial assistance to Member States is linked to appropriate conditionality. EFSF issues are backed by guarantees given by euro area Member States of up to €780 billion. EFSF has a lending capacity of €440 billion.

For further information also see FAQ.

distributed by
React to this article
Latest news
Date Title
04:57a AVACTA : Says Annual Revenue To Meet Expectations As CFO Departs (UPDATE)
04:56a ARCELIK : Exclusive Campaigns for Father's Day from Arçelik
04:56a HONG KONG EXCHANGES AND CLEARING : News Releases and Speeches
04:56a CHINA BIO MED REGENERATION TECHNOLOGY : Business Update - Forming Special Vehicle for Adult Human Tissue Storage
04:56a DEUTSCHE BOERSE : GMEX interest rate swap future launch for trading in August at Eurex
04:56a SAVILLS : expands its residential operations in Italy
04:56a ILIAD : Free Mobile Plan: The first no-commitment mobile plan at less than €20/month including roaming from all European Union countries
04:56a CHINA SILVER : Voluntary announcement in relation to the acquisition of 25%0equityinterest in a prc company
04:56a PER AARSLEFF A/S : Aarsleff to carry out cruise ship quay on Gotland in Sweden
04:55a STEWART INFORMATION SERVICES : Title CFPB Update Course Hosted at Tye Preston Memorial Library in Canyon Lake
Latest news
Advertisement
Hot News 
JAYWING : Loss Widens On Operating Costs As It Shakes Up Management
OMEGA DIAGNOSTICS : Identifies Storage Stability Issue With Visitect CD4
Eagle Eye Expects "Material Revenue" From New Sainsbury's Contract
TECHNIP : Selected by Jurong Shipyard for a FPSO Conversion Contract
MCBRIDE : Full-Year Adjusted Operating Profit To Meet Expectations
Most Read News
07/06 Samsung Electronics profit guidance suggests costly S6 miss
07/06 Boeing says loss of Ex-Im Bank would be competitive disadvantage
07/06 CREDIT SUISSE : says has around 27 billion Swiss francs of recapitalisation resources
07/06 ALLSTATE : helping identify likely problems with elevators, restaurant food in Chicago
07/06 Aetna CEO addresses antitrust concerns over Humana deal
Most recommended articles
04:48a FTSE edges lower, pulled down by Rolls-Royce, mining shares
04:45a China stocks fall again despite support measures
04:37a Oil rallies after huge selloff, outlook weak
04:34a UK May industrial output jumps on oil boost, but manufacturing weak
04:32a Oil rallies after huge selloff, outlook weak