Safety measures concerning the Coronavirus COVID-19. Read more about the measures.

x

Facts

Media Name: smartfact02blcapitalstock.png
20
ESM shareholders
Media Name: smartfact03blpaidincapital.png
€295 bn
total amount of loans disbursed by ESM/EFSF
Media Name: smartfact03blpaidincapital.png
€427 bn
ESM's remaining lending capacity (Forward Commitment Capacity)
Media Name: smartfact04bldiagramup.png
85%
Percentage of ESM’s €500 bn lending capacity currently available
Media Name: smartfact03blpaidincapital.png
€80.5 bn
ESM’s paid-in capital
Media Name: smartfact03whpaidincapital.png
€17.7 billion
amount disbursed to Ireland by EFSF
Media Name: smartfact04whdiagramup.png
20.8 years
weighted average maturity of EFSF loans to Ireland
Media Name: smartfact02whcapitalstock.png
2029
Date when Ireland starts to repay EFSF loans. All payments due until 2042
Media Name: smartfact04whdiagramup.png
5.5 %
Ireland’s estimated GDP growth in 2022
Media Name: smartfact03whpaidincapital.png
€41.3 billion
amount ESM disbursed to Spain
Media Name: smartfact02whcapitalstock.png
8
number of Spanish banks recapitalised thanks to ESM funds
Media Name: smartfact01whamountpng.png
12.5 years
Weighted average maturity of ESM loans to Spain
Media Name: smartfact02whcapitalstock.png
14.9 years
Weighted average maturity of ESM loans to Cyprus

Articles and Op-eds

Press conferences

05
Feb
Pierre Gramegna at AFME’s Annual Financial Services Policy Dinner
06
Feb
Maria Kartcheva at Global Capital SSA briefing
10
Feb
Rolf Strauch at EIB Seminar
17
Feb
Eurogroup
20
Feb
ESM Youth Talk: Rolf Strauch's lecture at the University College Dublin
03
Mar
Kalin Anev Janse at CEPS Ideas Lab "Competitiveness of the financial sector"
05
Mar
Pierre Gramegna at EIB Group Forum "Investing in a more sustainable and secure Europe"
10
Mar
Eurogroup
13
Mar
Rolf Strauch at EIOPA Sustainable Finance Conference 2025 "Driving Resilience and Action in a Warming World"
14
Mar
Matjaz Susec - Presentation at the University of Ljubljana - School of Economics and Business
26
Mar
Pierre Gramegna at HSBC Global Investment Summit
03
Apr
ESM-SUERF-Bruegel Workshop “Is Europe Prepared for Extreme Events? Risks - resilience - policy responses”
28
Jan
Sarah Fouqueray-Carrick at Central Bank and Sovereign Wealth Fund Forum - Deutsche Börse Group
21
Jan
Pierre Gramegna's “Mein Europa” Lecture
20
Jan
Eurogroup
14
Jan
Gergely Hudecz at “Europe, Asia and the Changing Global Economy”
09
Dec
Eurogroup
09
Dec
Pierre Gramegna at Institut Jacques Delors Annual Conference
04
Dec
Luxembourg-Frankfurt financial professionals' network event with Joachim Nagel
28
Nov
Kalin Anev Janse at Kapital Executive Circle Annual Conference "Banks and the Business"
28
Nov
Pierre Gramegna at the 25th Anniversary of the Euro50 Group
28
Nov
Leticia Lucas at the Internal Audit Service Annual Conference - Remaining Relevant : How Internal Audit Navigates in a Changing World”
27
Nov
ESM Policy Conference "Strategic Autonomy: A European Public Good"
26
Nov
Kalin Anev Janse at OMFIF/LBBW Euro SSA Roundtable

Blog

Financial markets
The Hidden Web-Image 1540 x 1027
Financial Sector and Market Analysis
Ashley Andrews
Thiago Fauvrelle
Giulia Fusi

The hidden web: How loss-absorbing bonds connect banks and investment funds

Financial conditions
Financial markets
Market sentiment
kalin-column.png
Column
Kalin Anev Janse

Outside of the box: What to look out for in 2025?

Fintech
Financial stability
Electronic trading-Image 1540x1027
Chief Financial Officer
Marko Mravlak
Ioannis Vazouras

Electronic trading – a boost to ESM bond market resilience

Investor relations

Cards
European Stability Mechanism & European Financial Stability Facility Non US Persons
Bitmap
ESM & EFSF
Loans within a macroeconomic adjustment programme
used
Ireland
Ireland
Portugal
Portugal
Greece
Greece
Cyprus
Cyprus
Objective
To assist ESM Members in significant need of financing, and which have lost access to the markets, either because they cannot find lenders or because the financing costs would adversely impact the sustainability of public finances.
Conditionality
ESM loans are conditional upon the implementation of macroeconomic reform programs prepared by the European Commission, in liaison with the European Central Bank and, where appropriate, the International Monetary Fund.
Monitoring
The same institutions are entrusted with monitoring compliance with the agreed program conditions for economic reform. The ESM Member is obliged to cooperate with this monitoring and enable the ESM to perform its financial due diligence. If the country deviates significantly from the program, disbursements may be withheld.
Primary market purchases
unused
unused
Objective
The ESM may engage in primary market purchases of bonds or other debt securities issued by ESM Members at market prices to allow them to maintain or restore their relationship with the investment community and therefore reduce the risk of a failed auction. This can complement the regular loan instrument or a precautionary programme. The purchase will be limited to 50% of the final issued amount.
conditionality
No additional conditionality beyond the underlying programme.
Secondary market purchases
unused
unused
objective
To support the sound functioning of the government debt markets when lacking market liquidity threatens financial stability in the context of a loan either with a macroeconomic adjustment programme or without if the Member's economic and financial situation is fundamentally sound.
conditionality
For ESM Members not under a programme, specific policy conditions will apply.
Precautionary credit line
unused
unused
objective
To support sound policies and prevent crisis situations from emerging. It aims to help ESM Members whose economic conditions are sound to maintain continuous access to market financing by strengthening the credibility of their macroeconomic performance.
two types of credit lines
Both can be drawn via a loan or a primary market purchase, have an initial availability period of one year and are renewable:
• Precautionary Conditioned Credit Line (PCCL): available to a Member State whose economic and financial situation is fundamentally sound, as determined by respecting six eligibility criteria such as public debt, external position or market access on reasonable terms.
• Enhanced conditions credit line (ECCL): access open to euro area Member States whose economic and financial situation remains sound but that do not comply with the eligibility criteria for PCCL. The ESM Member is obliged to adopt corrective measures addressing such weaknesses and avoiding future problems in respect of access to market financing. The ESM Member has the flexibility to request funds at any time during the availability period.
monitoring
When an ECCL is granted or a PCCL drawn, the ESM Member is subject to enhanced surveillance by the EC. Surveillance covers the country’s financial condition and its financial system.
Loans for indirect bank recapitalisation
used
Spain
Spain
objective
To preserve the financial stability of the euro area by addressing those cases where the financial sector is primarily at the root of a crisis, rather than fiscal or structural policies.
eligibility
The beneficiary Member State should demonstrate an inability to:
• Meet capital shortfalls via private sector solutions.
• Recapitalise the institutions without adverse effects for its own financial stability and fiscal sustainability. The institutions should be of systemic relevance or pose a serious threat to the financial stability of the euro area or its Member States. The ESM Member should demonstrate its ability to reimburse the loan.
conditionality
Will apply to financial supervision, corporate governance and domestic law relating to restructuring or resolution.
Direct recapitalisation of institutions
unused
unused
objective
To help remove a serious risk of contagion from the financial sector to the sovereign by allowing the direct recapitalisation of institutions. The total amount available for this instrument is limited to €60 billion. The instrument is relevant for banks (systemically important credit institutions), financial holding companies, and mixed financial holding companies as defined in relevant EU legislation.
eligibility
Eligible if the following situations apply:
• They are or are likely to be in breach of the relevant capital requirements and are unable to attract sufficient capital from private sector sources to resolve their capital problems.
• Burden-sharing arrangements, such as bail-in (fully applicable in 2016), in the Bank Recovery and Resolution Directive, are insufficient to fully address the capital shortfall.
• They have a systemic relevance or pose a serious threat to the financial stability of the euro area as a whole or the requesting ESM Member.
• The institution is supervised by the ECB.
• The beneficiary Member State should also demonstrate that it cannot provide financial assistance to the institutions without very adverse effects on its own fiscal sustainability, and that therefore the use of the indirect recapitalisation instrument is infeasible.
conditionality
Will apply, addressing the sources of difficulties in the financial sector and, where appropriate, the general economic situation of the ESM Member. Additional institution-specific conditions will also apply.
About

How ESM Loans Help Programme Countries

See more: 2022 ESM Annual Report

ESM and Global Financial Stability

Careers

ESM Explainer Video