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Luxembourg – The European Stability Mechanism (ESM) today conducted a tap of its 0% 6-year bond maturing on 18 October 2022 through an auction. The deal raised €998.55 million, bringing the total size of the bond to nearly €5 billion (€4,995.05 million).
“Today’s tap auction met with excellent investor demand, as the orderbook was oversubscribed nine times. The transaction completes the ESM’s funding for the first quarter of 2018, and €3.5 billion is planned for the second quarter,” said Siegfried Ruhl, ESM Head of Funding and Investor Relations.
Working Paper 26
Does exchange rate depreciation have contractionary effects on firm-level investment? The implications of alternative types of bond financing
This paper shows that exchange rate depreciations can have a contractionary impact on investment spending when firms hold foreign currency-denominated debt.
Authors: Jose Maria Serana (Bank for International Settlements) and Ricardo Sousa (European Stability Mechanism)
"The Road toward Monetary Union in Europe – Where Next?"
The European Union is poised to further its long march toward full economic and monetary union by forming a European Monetary Fund or EMF that will succeed the European Stability Mechanism (ESM). Klaus Regling is the current and first Managing Director of the European Stability Mechanism which, since its launch in 2012, has helped to preserve stability in the euro area by providing financial support to euro area Member States in distress.
Press conference after Eurogroup meeting, 19 February 2018
Interview with Klaus Regling, ESM Managing Director
Published in Augsburger Allgemeine (Germany), 19 February 2018
Interview conducted on 15 February 2018
Interviewer: Michael Kerler
Augsburger Allgemeine: Mr. Regling, what does the situation in the crisis countries look like today? Have they put the crisis behind them with the help of the ESM rescue packages?
Interview with Klaus Regling, ESM Managing Director
Published in Delo (Slovenia), 10 February 2018; interview conducted on 2 February 2018
Luxembourg – The Board of Directors of the European Stability Mechanism (ESM) today approved a request by Spain to make two voluntary early repayments towards its ESM loan, totalling €5 billion.
It is the seventh time Spain will make an early repayment of its loan, which was used to recapitalise its banks in 2012 and 2013. Following the two repayments, Spain’s outstanding debt to the ESM will stand at €26.7 billion.