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Facts

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20
ESM shareholders
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€295 bn
total amount of loans disbursed by ESM/EFSF
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€25—30 bn
amount of bonds currently issued annually
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€422 bn
ESM's remaining lending capacity (Forward Commitment Capacity)
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82%
Percentage of ESM’s €500 bn lending capacity still available
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5
countries have successfully completed EFSF/ESM programmes: Ireland, Spain, Portugal, Cyprus, Greece
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€18.2 bn
Accumulated savings for the 5 programme countries in 2019 as a result of EFSF/ESM financing
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42.5 years
Maximum weighted average maturity of EFSF loans to Greece

Interviews

Videos and photos

Articles and Op-eds

Press conferences

28
May
ESM Research seminar: "Unconditional Support in Times of Crisis: The Catalytic Role of IMF Emergency Financing During the COVID-19 Pandemic" held by Jeremie Cohen
28 May . 14:30 - 16:00
ESM premises
29
May
Giovanni Callegari at "ESG and climate risk management framework for the financial sector" co-organized by WU's Institute for Ecological Economics and SUERF
29 May . 11:15 - 12:45
Vienna, Austria
30
May
Rolf Strauch at AoF-HKIMR seminar "Financial Implications of Global Fragmentation"
30 May . 04:45 - 06:00
Hong Kong
05
Jun
6th Annual EC-EIB-ESM Capital Markets Seminar
5 - 6 Jun . 09:00 - 14:45
Luxembourg, Luxembourg
20
Jun
Eurogroup
20 Jun . 15:00 - 16:00
Luxembourg, Luxembourg
20
Jun
Pilar Castrillo at 13th CompNet Annual Conference
20 Jun . 18:00 - 19:30
Valletta, Malta
21
Jun
Rolf Strauch at Barcelona School of Economics Summer Forum - A Dynamic Economic and Monetary Union Workshop
21 Jun . 15:10 - 16:00
Barcelona, Spain
20
Jun
Kalin Anev Janse at 2024 Global Official Institutions Conference
20 - 21 Jun . 09:30 - 16:30
Paris, France
04
Jul
Paolo Fioretti at 28th Annual Economist Government Roundtable
4 Jul . 11:05 - 11:50
Athens, Greece
04
Jul
2nd Economic modelling in policy Institutions
4 - 5 Jul . 09:00 - 18:00
ESM premises
26
Sep
The Economics of Risk
26 - 27 Sep . 09:00 - 18:00
ESM premises
28
May
Giovanni Callegari at AFME/OMFIF's 4th Annual European Financial Integration Conference
28 May . 10:00 - 11:00
Frankfurt am Main, Germany
28
May
Rolf Strauch at 80 Years After Bretton Woods Conference "Building an International Monetary and Financial System for All"
28 May . 03:00 - 04:30
Hangzhou, China
24
May
Pierre Gramegna at the EUI State of the Union
24 May . 11:15 - 12:25
Florence, Italy
16
May
8th Joint Regional Financing Arrangements Research Seminar: "Safeguarding stability in a more fragmented world: global and regional perspectives on challenges and policy implications"
16 - 17 May . 08:30 - 17:00
Luxembourg
15
May
Pierre Gramegna at Conférence Diplomatique
15 May . 12:00 - 13:00
Luxembourg
13
May
Eurogroup
13 May . 15:00 - 16:00
08
May
Rolf Strauch at WEF Workshop - Securing a Green and Competitive Europe
8 May . 15:30 - 16:10
ESM premises
08
May
Kalin Anev Janse at WEF Workshop - Securing a Green and Competitive Europe
8 May . 10:00 - 11:00
ESM premises
08
May
Pierre Gramegna at WEF Workshop - Securing a Green and Competitive Europe
8 May . 09:20 - 09:30
ESM premises
07
May
ESM Research seminar: "A European Climate Bond" with Irene Monasterolo
7 May . 11:00 - 12:30
ESM premises
29
Apr
Kalin Anev Janse at WEF CFO Community Meeting
29 Apr . 14:00 - 15:00
Online
22
Apr
Kalin Anev Janse at DZ BANK Capital Markets Conference 2024
22 Apr (ALL DAY)
Berlin, Germany

Blog

Funding
Climate change
Financial innovation
Investment
Five themes to watch for multilateral financial institutions_Blog Image_1540x1027
Chief Financial Officer
Kalin Anev Janse
Kim Skov Jensen

Five themes to watch for multilateral financial institutions

Climate change
Competitiveness
Economic fragmentation
Climate Change and Industrial Strategies Different Approaches in the EU and the US
Policy Strategy and Institutional Relations
Kai Behrens

Climate change and industrial transformation: Different approaches in Europe and the United States

Capital markets union
Credit
Enterprises
Financial stability
How harmonisation of Europe’s insolvency laws could help businesses_Blog Image_1540x1027
Legal
Jasper Aerts

How harmonisation of Europe’s insolvency laws could help businesses

Investor relations

Cards
European Stability Mechanism & European Financial Stability Facility Non US Persons
Bitmap
ESM & EFSF
Loans within a macroeconomic adjustment programme
used
Ireland
Ireland
Portugal
Portugal
Greece
Greece
Cyprus
Cyprus
Objective
To assist ESM Members in significant need of financing, and which have lost access to the markets, either because they cannot find lenders or because the financing costs would adversely impact the sustainability of public finances.
Conditionality
ESM loans are conditional upon the implementation of macroeconomic reform programs prepared by the European Commission, in liaison with the European Central Bank and, where appropriate, the International Monetary Fund.
Monitoring
The same institutions are entrusted with monitoring compliance with the agreed program conditions for economic reform. The ESM Member is obliged to cooperate with this monitoring and enable the ESM to perform its financial due diligence. If the country deviates significantly from the program, disbursements may be withheld.
Primary market purchases
unused
unused
Objective
The ESM may engage in primary market purchases of bonds or other debt securities issued by ESM Members at market prices to allow them to maintain or restore their relationship with the investment community and therefore reduce the risk of a failed auction. This can complement the regular loan instrument or a precautionary programme. The purchase will be limited to 50% of the final issued amount.
conditionality
No additional conditionality beyond the underlying programme.
Secondary market purchases
unused
unused
objective
To support the sound functioning of the government debt markets when lacking market liquidity threatens financial stability in the context of a loan either with a macroeconomic adjustment programme or without if the Member's economic and financial situation is fundamentally sound.
conditionality
For ESM Members not under a programme, specific policy conditions will apply.
Precautionary credit line
unused
unused
objective
To support sound policies and prevent crisis situations from emerging. It aims to help ESM Members whose economic conditions are sound to maintain continuous access to market financing by strengthening the credibility of their macroeconomic performance.
two types of credit lines
Both can be drawn via a loan or a primary market purchase, have an initial availability period of one year and are renewable:
• Precautionary Conditioned Credit Line (PCCL): available to a Member State whose economic and financial situation is fundamentally sound, as determined by respecting six eligibility criteria such as public debt, external position or market access on reasonable terms.
• Enhanced conditions credit line (ECCL): access open to euro area Member States whose economic and financial situation remains sound but that do not comply with the eligibility criteria for PCCL. The ESM Member is obliged to adopt corrective measures addressing such weaknesses and avoiding future problems in respect of access to market financing. The ESM Member has the flexibility to request funds at any time during the availability period.
monitoring
When an ECCL is granted or a PCCL drawn, the ESM Member is subject to enhanced surveillance by the EC. Surveillance covers the country’s financial condition and its financial system.
Loans for indirect bank recapitalisation
used
Spain
Spain
objective
To preserve the financial stability of the euro area by addressing those cases where the financial sector is primarily at the root of a crisis, rather than fiscal or structural policies.
eligibility
The beneficiary Member State should demonstrate an inability to:
• Meet capital shortfalls via private sector solutions.
• Recapitalise the institutions without adverse effects for its own financial stability and fiscal sustainability. The institutions should be of systemic relevance or pose a serious threat to the financial stability of the euro area or its Member States. The ESM Member should demonstrate its ability to reimburse the loan.
conditionality
Will apply to financial supervision, corporate governance and domestic law relating to restructuring or resolution.
Direct recapitalisation of institutions
unused
unused
objective
To help remove a serious risk of contagion from the financial sector to the sovereign by allowing the direct recapitalisation of institutions. The total amount available for this instrument is limited to €60 billion. The instrument is relevant for banks (systemically important credit institutions), financial holding companies, and mixed financial holding companies as defined in relevant EU legislation.
eligibility
Eligible if the following situations apply:
• They are or are likely to be in breach of the relevant capital requirements and are unable to attract sufficient capital from private sector sources to resolve their capital problems.
• Burden-sharing arrangements, such as bail-in (fully applicable in 2016), in the Bank Recovery and Resolution Directive, are insufficient to fully address the capital shortfall.
• They have a systemic relevance or pose a serious threat to the financial stability of the euro area as a whole or the requesting ESM Member.
• The institution is supervised by the ECB.
• The beneficiary Member State should also demonstrate that it cannot provide financial assistance to the institutions without very adverse effects on its own fiscal sustainability, and that therefore the use of the indirect recapitalisation instrument is infeasible.
conditionality
Will apply, addressing the sources of difficulties in the financial sector and, where appropriate, the general economic situation of the ESM Member. Additional institution-specific conditions will also apply.
About

How ESM Loans Help Programme Countries

See more: 2022 ESM Annual Report

ESM and Global Financial Stability

Careers

ESM Explainer Video