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EFSF

The EFSF shareholders are the euro area Members (excluding the Republic of Latvia and the Republic of Lithuania, which joined when the permanent support mechanism ESM was already in place).

 

Overview

The European Financial Stability Facility (EFSF) was created as a temporary crisis resolution mechanism by the euro area Member States in June 2010. The EFSF has provided financial assistance to Ireland, Portugal and Greece. The assistance was financed by the EFSF through the issuance of EFSF bonds and other debt instruments on capital markets. The EFSF does not provide any further financial assistance, as this task is now performed solely by the ESM. Nevertheless, the EFSF continues to operate in order to:

receive loan repayments from beneficiary countries;
make interest and principal payments to holders of EFSF bonds;
roll over outstanding EFSF bonds, as the maturity of loans provided to Ireland, Portugal and Greece is longer than the maturity of bonds issued by the EFSF.

 

EFSF Shareholders

The EFSF shareholders are the euro area Members (excluding the Latvia, Lithuania and Croatia, which joined when the permanent support mechanism ESM was already in place). The infographic below shows the number of shares and subscription amounts for each shareholder.

Shares and capital per EFSF Member

Germany
Show as table
ESM Members Number of shares Sort descending Capital as of 31 December 2015 (in €)
Latvia
Lithuania
Malta 2,575,437 25,754.37
Cyprus 5,578,757 55,787.57
Luxembourg 7,119,129 71,191.29
Estonia 7,294,357 72,943.57
Slovenia 13,398,796 133,987.96
Slovakia 28,256,464 282,564.64
Ireland 45,261,689 452,616.89
Finland 51,097,174 510,971.74
Portugal 71,329,846 713,298.46
Austria 79,125,435 791,254.35
Greece 80,070,849 800,708.49
Belgium 98,844,650 988,446.50
Netherlands 162,521,534 1,625,215.34
Spain 338,392,963 3,383,929.63
Italy 509,243,918 5,092,439.18
France 579,522,400 5,795,224.00
Germany 771,706,294 7,717,062.94
Total 2,851,339.692 28,513,396.920

Note: Ireland, the Portuguese Republic, the Hellenic Republic and the Republic of Cyprus have become Stepping-Out Guarantors.

EFSF GOVERNANCE STRUCTURE

The mission of both the EFSF and ESM is to safeguard financial stability in Europe by providing financial assistance to countries of the euro area. The two institutions have a different governance structure but share the same staff and offices located in Luxembourg.

EFSFstructure
EFSF General Meeting of Shareholders
The General Meeting of shareholders represents the 17 euro area countries.
Board of Directors
The Board of Directors comprises a member for each one of the 17 EFSF shareholders, usually its deputy finance minister. The European Commission and ECB may participate as an observer.
EFSF CEO
The daily management and affairs of the EFSF is delegated to the Chief Executive Officer. Klaus Regling is the EFSF's CEO since the EFSF was set up in 2010.
EFSF Audit Committee
The Audit Committee consist of five members appointed from among the EFSF Directors and assists the Board of Directors in the discharge of its responsibilities in the areas of financial reporting, internal control and risk management.

EFSF General Meeting of Shareholders

The General Meeting of shareholders represents the 17 euro area countries when the EFSF was set up in 2010. It may order, carry out and ratify acts relating to the EFSF operations. It approves the financial statements, and determines the appropriation and distribution of net profits. It also grants discharge and appoints the members of the EFSF Board of Directors and the external auditor. The Annual General Meeting is held in the City of Luxembourg.

 

Board of Directors

The Board of Directors comprises a member for each one of the EFSF Shareholders. Each EFSF Shareholder proposes for nomination to the Board of Directors its representative in the Eurogroup Working Group (or such person's alternate as representative on such group). The European Commission and ECB may participate as observers.

The Board performs all EFSF acts of administration. The Board decides on the disbursement of loans under existing loan facilities, and is also responsible for drawing up the balance sheet, and the profit and loss accounts of the EFSF.

The conduct of the daily management and affairs is delegated to Christophe Frankel, the interim CEO of the EFSF.
EFSF Board of Directors meeting documents library

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Nima Ahmadzadeh

Luxembourg
Director of Economic and Fiscal Affairs, Ministry of Finance
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Paul Zahra

Malta
Permanent Secretary, Ministry for Finance and Employment
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Harald Waiglein

Austria
Director General for Economic and Finance, Chairperson of EFSF BoD
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Žiga Lavrič

Slovenia
Financial Counsellor, permanent representation of Slovenia to the EU
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Peter Paluš

Slovakia
Head of Financial Unit at the Permanent Representation of Slovakia to the European Union
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Märten Ross

Estonia
Deputy Secretary General for Financial Policy and External Relations
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Gary Tobin

Ireland
Assistant Secretary General, Department of Finance
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Carlos Cuerpo

Spain
Secretary General of Treasury and International Financing

EFSF Audit Committee

The EFSF Audit Committee is a sub-committee of the Board of Directors.
 
The Audit Committee consist of five members appointed from among the Directors and assists the Board of Directors in the discharge of its responsibilities in the areas of financial reporting, internal control and risk management. The Committee monitors the financial reporting process, and the effectiveness of the EFSF internal control, internal audit and risk management systems. It also reviews the statutory audit of the annual and consolidated accounts, and recommends the external auditor to the Board of Directors.

EFSF Annual Accounts

The EFSF Annual Accounts, which are accompanied by the EFSF Management Report, comprise the following financial statements:

statement of financial position;
satement of comprehensive income;
statement of changes in equity;
statement of cash flows.

Background: For reasons of transparency and the protection of third parties, companies registered in Luxembourg are required to lodge the annual accounts with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés - RCS) and to mention the lodging of the accounts (statement of submission) in the Luxembourg Official Journal.