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Fiscal multipliers and foreign holdings of public debt
Download PDF: Working Paper 30

This paper finds that the effects of fiscal expansions on economic activity are stronger when governments have access to foreign sources of finance.
 

Authors: Fernando Broner (CREI, Universitat Pompeu Fabra, and Barcelona GSE), Daragh Clancy (ESM), Alberto Martin (CREI, Universitat Pompeu Fabra, and Barcelona GSE) and Aitor Erce (ESM)

 

Abstract:

Repayment schedule for first disbursement under 4th tranche of ESM FFA with Greece (28/03/2018)
Principal repayment date Payment amount (€) 28 March 2051 783,200,000 28 March 2052 764,840,000 28 March 2053 749,960,000 28 March 2054 731,600,000 28 March 2055 0 28 March 2056 0 28 March 2057 0
“The role of the ESM in a deepening EMU” - speech by Kalin Anev Janse

 
 

ESM Board of Directors approves €6.7 billion loan tranche to Greece

Luxembourg – Today the Board of Directors of the European Stability Mechanism (ESM) approved the fourth tranche of €6.7 billion of ESM financial assistance for Greece. This decision follows the Greek government’s completion of all prior actions and the subsequent approval of the Supplemental Memorandum of Understanding by the ESM Board of Governors. The tranche will be used for debt service, domestic arrears clearance and for establishing a cash buffer. The Board also approved an amendment to the Financial Assistance Facility Agreement (FFA) between the ESM and Greece.

Explainer on fourth ESM loan tranche for Greece
How much will be disbursed in the current (fourth) tranche? The fourth tranche amounts to €6.7 billion, and will be disbursed for the following needs: €3.3 billion for debt service €1.9 billion as a cash buffer €1.5 billion for domestic arrears clearance €5.7 billion will be disbursed on 28 March, and the remaining €1 billion - for the purpose of arrears clearance - may be disbursed from 1 May 2018 but no later than 15 June 2018.
Pricing and hedging GDP-linked bonds in incomplete markets
Download PDF:
Working Paper 29

This paper shows how to design, price, and hedge GDP-linked bonds and provides favourable evidence for their use, based on results for both advanced economies and emerging markets.
 

Authors: Andrea Consiglio (University of Palermo) and Stavros A. Zenios (University of Cyprus and Wharton Financial Institutions Center, University of Pennsylvania)

 

Abstract:

Rolf Strauch on Reinventing Bretton Woods panel
Time shown is local time.

Hosted by the US-Korea Institute at SAIS and Reinventing Bretton Woods Committee.
“Budgetary Aspects for Stabilising EMU” - speech by Klaus Regling

 Klaus Regling, ESM Managing Director
“Budgetary Aspects for Stabilising EMU”
Workshop of the European Parliament’s Committee on Budgets
Brussels, 21 March 2018
(please check against delivery)
 


“The ESM’s role in deepening monetary union” - speech by Klaus Regling

 
 

6th Annual Meeting of the ESM Board of Governors

The Board of Governors (composed of the 19 euro area finance ministers) holds its annual meeting at the ESM premises in Luxembourg during which it approves the ESM Annual Report, submitted by the Managing Director. The ESM Annual Report includes a description of the policies and activities of the ESM; the ESM Financial Statements; the external auditor's report, and the Board of Auditors' report in respect of the ESM Financial Statements.