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Luxembourg – The Board of Directors of the European Financial Stability Facility (EFSF) decided today to opt for a Reservation of Rights on EFSF loans to Greece, after the non-payment of Greece to the International Monetary Fund (IMF). Following the IMF Managing Director’s notification of the IMF Executive Board, this non-payment results in an Event of Default by Greece, according to EFSF financial agreements with Greece.

Luxembourg – The Board of Directors of the European Stability Mechanism (ESM) approved today the disbursement of €100 million to Cyprus. This follows the positive assessment of the sixth quarterly review of Cyprus’s macroeconomic adjustment programme and approval of the supplemental Memorandum of Understanding with Cyprus by the ESM Board of Governors.

Luxembourg – The European Financial Stability Facility (EFSF) takes note of a public statement of the International Monetary Fund (IMF) that a Greek non-payment has occurred. It is the EFSF’s understanding that the IMF Managing Director has informed the IMF Executive Board. This will be confirmed by a meeting of the Executive Board, expected later today. For the EFSF, this would constitute an event of default for certain EFSF loans.

Luxembourg – The Greek financial assistance programme of the European Financial Stability Facility (EFSF) expires tonight at midnight CET. As a result, the last EFSF loan tranche of €1.8 billion will no longer be available for Greece and the €10.9 billion in EFSF notes to cover the potential cost of bank recapitalisation or bank resolution in Greece will be cancelled.

Luxembourg – The Board of Governors of the European Stability Mechanism (ESM) held its third Annual Meeting today at the ESM office in Luxembourg and approved the ESM Annual Report for 2014. The Board of Governors comprises the 19 euro area Finance Ministers. They discussed the development of the ESM and its key activities.

The Annual Report includes the ESM’s financial statements for 2014, which were approved by the Board of Governors. The ESM’s net result of nearly €444 million was allocated to its Reserve Fund, which serves as a buffer in case of potential losses.

Klaus Regling, Managing Director, ESM at the TsingHua University, Beijing, China

Luxembourg – The European Financial Stability Facility (EFSF) placed today a €2.25 billion four-and-a-half-year benchmark bond maturing on 4 November 2019. The issuance spread was fixed at mid swap minus 13 basis points. This implies a reoffer yield for investors of 0.175%. The coupon rate is 0.125%.