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Facts

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2.2 %
Greece's estimated GDP growth in 2024
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1.2 %
Ireland’s estimated GDP growth in 2024
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1.7 %
Portugal’s estimated GDP growth in 2024
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€11 bn
2020 target for ESM’s long-term funding (bond issuance)
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1.47 %
average interest rate on EFSF loans to Ireland (Q2 2024)
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1.47 %
average interest rate on EFSF loans to Portugal (Q2 2024)
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1.36 %
average interest rate on ESM loans to Greece (Q2 2024)
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1.34 %
average interest rate on ESM loans to Spain (Q2 2024)
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1.14 %
average interest rate on ESM loans to Cyprus (Q2 2024)
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52652.6%
of Greek public debt is held by EFSF/ESM (as of 30/06/2020)
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65%
Average interest rate charged by ESM on loans (Q2 2021)
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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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€203.8 bn
total amount disbursed to Greece by EFSF and ESM
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2.8 %
Cyprus's estimated GDP growth in 2024
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82%
Percentage of ESM’s €500 bn lending capacity still available
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€80.5 bn
ESM’s paid-in capital
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252.5
EFSF/ESM disbursed 2.5 times more in loans than IMF from 2011-2015
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5
countries have successfully completed EFSF/ESM programmes: Ireland, Spain, Portugal, Cyprus, Greece
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49349.3%
of Greek public debt is held by EFSF/ESM (as of 30/09/2021)
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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
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59%
Average interest rate charged by ESM on loans (31/12/2021)
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70670.6%
Percentage of total external financial assistance for Greece provided by EFSF/ESM
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€61.9 billion
Total amount disbursed to Greece under ESM programme
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€5.4 billion
amount disbursed to Greece for bank recapitalisation in ESM programme
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32 years
weighted average maturity of ESM loans to Greece
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€1.5 billion
amount ESM disbursed to Cyprus for bank recapitalisation
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2025
Date when Cyprus starts to repay its ESM loans. All payments due by 2031
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€26 billion
amount disbursed to Portugal by its largest creditor, the EFSF
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20.8 years
weighted average maturity of EFSF loans to Portugal
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2025
Date when Portugal starts to repay its EFSF loan. All payments due until 2040
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€12 billion
amount used by Portugal for bank recapitalisation (from total EFSF/EFSM/IMF loan amount of €78 bn)
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91%
Average interest rate on EFSF loans to Portugal (30/06/2022)
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€17.7 billion
amount disbursed to Ireland by EFSF
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20.8 years
weighted average maturity of EFSF loans to Ireland
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2029
Date when Ireland starts to repay EFSF loans. All payments due until 2042
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555.5%
Ireland’s estimated GDP growth in 2022
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About 20%
Percentage of total external assistance spent on bank recapitalisation
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1361.36%
Average interest rate on EFSF loans to Ireland (31/12/2021)
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€41.3 billion
amount ESM disbursed to Spain
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8
number of Spanish banks recapitalised thanks to ESM funds
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12.5 years
Weighted average maturity of ESM loans to Spain
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2022
Date when Spain starts to repay its ESM loans. All payments due by 2027
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€17.6 billion
amount of ESM loans repaid early and voluntarily by Spain
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74%
Average interest rate on ESM loans to Spain (31/12/2021)
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565.6%
Spain’s estimated GDP growth in 2022
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14.9 years
Weighted average maturity of ESM loans to Cyprus
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€6.3 billion
amount disbursed to Cyprus in the context of ESM programme
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1231.23%
Average interest rate on ESM loans to Greece (31/12/2021)
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€107 billion
reduction in Greece’s debt stock thanks to private sector haircut in March 2012
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10 years
deferral on loan repayments agreed by Eurogroup in November 2012
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EFSF: €19.5 bn; ESM: €8 bn
2022 target for EFSF and ESM long-term funding (bond issuance)
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40 years
the longest ESM bond maturity (issued in Dec. 2015)
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€7 bn
the largest ESM bond ever issued (in Oct. 2013)
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9 times
the oversubscription for the EFSF’s first bond issued in Jan. 2011

Interviews

Articles and Op-eds

Press conferences

09
Dec
Eurogroup
04
Dec
Luxembourg-Frankfurt financial professionals' network event with Joachim Nagel
28
Nov
Kalin Anev Janse at Kapital Executive Circle Annual Conference "Banks and the Business"
28
Nov
Pierre Gramegna at the 25th Anniversary of the Euro50 Group
28
Nov
Leticia Lucas at the Internal Audit Service Annual Conference - Remaining Relevant : How Internal Audit Navigates in a Changing World”
27
Nov
ESM Policy Conference "Strategic Autonomy: A European Public Good"
26
Nov
Kalin Anev Janse at OMFIF/LBBW Euro SSA Roundtable
21
Nov
Wim Van Aken at the 20th Annual Cyprus Summit - "Financial markets and economic growth: how is the current geopolitical turmoil affecting the market?"
14
Nov
Pierre Gramegna at COP29 - opening remarks in the panel discussion “Innovative finance mechanisms for climate action”
14
Nov
Kalin Anev Janse at COP29 - Sustainable Finance Initiatives beyond Climate and Achieving the SDGs
14
Nov
Kalin Anev Janse at COP29 - "Climate as core: Embedding sustainability in the operating model of financial institutions"
13
Nov
Pierre Gramegna at COP29 - panel discussion with EIB Vice President Ambroise Fayolle “Towards Sustainable Finance, a Perspective from European Financial Institutions”
07
Nov
ESM conference “Artificial Intelligence: Impact on Economies, Capital Markets and Organisations”

Blog

Fintech
Financial stability
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Chief Financial Officer
Marko Mravlak
Ioannis Vazouras

Electronic trading – a boost to ESM bond market resilience

Fintech
Financial stability
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Chief Operating Officer
Secretary General
Yana Djoneva
Josselin Hebert

Europe's AI leadership: key priorities

Debt issuance
Fiscal rules
Blog Spillover effects 1540x1027
Economic Risk Analysis
Matthieu Bellon
Matthias Gnewuch

Spillover effects of debt issuance and the importance of fiscal rules

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