Euro area Member States transfer third tranche of paid-in capital to ESM
Luxembourg – As foreseen, the 17 Member States of the euro area transferred the third tranche of paid-in capital to the ESM by 30 April 2013. The total amount of ESM paid-in capital has therefore gone up from around €32 billion to €48 billion. The two remaining tranches will be transferred by the Member States in October 2013 and April 2014. Upon payment of the final tranche, the ESM will have a paid-in capital of €80 billion, becoming the international financial institution with the highest paid-in capital worldwide.
“Thanks to the contributions of our Member States the ESM has a very robust capital structure”, said Klaus Regling, Managing Director of the ESM. “In a year the ESM will have reached a lending capacity of €500 billion. At the same time, the EFSF finances the adjustment programmes for Greece, Ireland and Portugal that amount to €192 billion in commitments.”
When the ESM was founded, the 17 euro area Member States agreed to provide the ESM’s paid-in capital of €80 billion in five tranches of €16 billion.