How much could the ESM lend to the Single Resolution Fund?

The nominal cap for ESM loans to the SRF is set at €68 billion. This figure is expected to be above the target level of the SRF (1% of covered deposits in the banking union) when the ESM backstop is introduced in 2022.  If the credit line is used, the SRF will pay back the ESM loan with money from bank contributions within three years, although this period can be extended so that the total maturity is up to five years. As a result, it will be fiscally neutral over the medium term.