What funding tools do the ESM and EFSF apply?
The ESM applies capital market and money market instruments. Capital market tools include benchmark bonds with maturities ranging from one year to a maximum of 43 years for the ESM, and a maximum of 38 years for the EFSF (the longest loan maturity being the limit). The ESM may hold its own bonds for a limited amount, so that additional funding may be raised by selling the bonds on the secondary market or by using them as collateral in the secured money market. As a supplement to the regular benchmark bond programme, the ESM may issue N-bonds and promissory/registered notes.
The ESM issues bills through regular auctions and may also engage in unsecured money market transactions. Transactions may be conducted overnight, on a rolling basis or for tenors up to one year. The ESM may also issue commercial paper, money market promissory notes and engage in repo transactions. In addition, the ESM has established liquidity lines with the DMOs of ESM members and a network of credit lines with private banks.
The EFSF applies capital market and money market instruments. Capital market tools include benchmark bonds with maturities ranging from 1 to 30 years. The EFSF may hold its own bonds for a limited amount, so that additional funding may be raised by selling the bonds on the secondary market or by using them as collateral in the secured money market.
The ESM issues bills through regular auctions and may also engage in unsecured money market transactions. Transactions may be conducted overnight, on a rolling basis or for tenors up to one year. The ESM may also issue commercial paper, money market promissory notes and engage in repo transactions. In addition, the ESM has established liquidity lines with the DMOs of ESM members and a network of credit lines with private banks.
The EFSF applies capital market and money market instruments. Capital market tools include benchmark bonds with maturities ranging from 1 to 30 years. The EFSF may hold its own bonds for a limited amount, so that additional funding may be raised by selling the bonds on the secondary market or by using them as collateral in the secured money market.