Spain (concluded)

ESM programme for Spain (concluded)

On 31 December 2013, the ESM financial assistance programme for Spain expired. The ESM disbursed a total of €41.3 billion to the Spanish government for the recapitalisation of the country’s banking sector.

This was the first financial assistance programme carried out by the ESM. Also it was the first time the instrument of recapitalising banks through loans granted to a government was used. There were no contributions from other lenders.

In July 2012 the Eurogroup approved an envelope of financial assistance for Spain of up to €100 billion. It was designed to cover a capital shortfall identified in a number of Spanish banks, with an additional safety margin. However, the Spanish government did not request the full amount. The ESM disbursed close to €39.5 billion in December 2012 and a further €1.8 billion in February 2013. The loans were provided to the Fondo de Restructuración Ordenado Bancaria (FROB), the bank recapitalisation fund of the Spanish government, and then channelled to the financial institutions concerned.

The assistance was disbursed in the form of debt securities issued by the ESM for this purpose. They comprised 2- and 10-month bills, as well as floating rate notes (FRNs) with a maturity between 18 months and 3 years.

ESM financial assistance for Spain was accompanied by policy conditionality focused on the banking sector. The conditionality consisted of bank-specific measures, including in-depth bank restructuring plans in line with EU state aid rules. Reforms concerning the governance, supervision and regulation of the financial sector have also been implemented.

Financial assistance for the recapitalisation of the Spanish banking sector

Date of Disbursement Amount disbursed Cumulative amount disbursed Average maturity of loan Final maturity
11/12/2012 €39.468 bn €39.468 bn 12.5 years 11/12/2027 1
05/02/2013 €1.865 bn €41.333 bn 12.2 years 11/12/2025 2

1 Constant amortization between 2022 and 2027 of €5.643 bn per year (amount adjusted following loan prepayments)

2 Constant amortization between 2024 and 2025 of €0.933 bn per year

Details of the notes provided by ESM

ISIN Issuance date Maturity Type Amount
EU000A1U98X6 01/02/2013 05/08/2015 30 month FRN €1.865 bn
EU000A1U97C2 05/12/2012 11/02/2013 2 month Bill     €2.5 bn
EU000A1U97D0 05/12/2012 11/10/2013 10 month Bill €6.468 bn
EU000A1U98U2 05/12/2012 11/06/2014 18 month FRN €6.5 bn
EU000A1U98V0 05/12/2012 11/12/2014 2 year FRN €12 bn
EU000A1U98W8 05/12/2012 11/12/2015 3 year FRN €12 bn

Loan repayments

Date of repayment Amount repaid Cumulative amount repaid Details
08/07/2014 €1.304 bn
€1.304 bn
Early repayment (voluntary)
23/07/2014 €0.308 bn
€1.612 bn
Scheduled repayment of unused funds
17/03/2015 €1.5 bn
€3.112 bn
Early repayment (voluntary)
14/07/2015 €2.5 bn €5.612 bn Early repayment (voluntary)

© European Stability Mechanism 2015

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