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Luxembourg - The inaugural meeting of the Board of Governors of the European Stability Mechanism (ESM), comprising the euro area Finance Ministers, was held in Luxembourg on 8 October 2012. Jean-Claude Juncker, President of the Eurogroup and Chairman of the Board of Governors of the ESM, said: “I am delighted to announce that the ESM has been formally inaugurated today.

Luxembourg – The EFSF has appointed Wolfgang Proissl as Head of Communication with effect from 1 October 2012 following the decision by Christof Roche, Chief Press Officer of EFSF, to return to Brussels for a new career move.

Luxembourg – EFSF has appointed David Vegara as Senior Advisor to the CEO Klaus Regling with effect from 20 September 2012. Mr Vegara previously worked at the IMF where he was Deputy Director of the Western Hemisphere Department.

Luxembourg – The European Financial Stability Facility today placed a €3 billion 10-year benchmark bond maturing on 05/09/2022. The issuance spread at reoffer was fixed at mid swap plus 57 basis points. This implies a reoffer yield for investors of 2.307%.

HSBC, Citi and J.P. Morgan acted as lead managers for this issue and Deutsche Finanzagentur acted as Issuance Agent.

THE EURO AND THE FUTURE OF EUROPE

Klaus Regling

CEO of the EFSF

International Institute for Strategic Studies - Asia

Mumbai, August 21, 2012

Dear Governor Subbarao, dear John Chipman, dear Sanjaya Baru, ladies and gentlemen,

Luxembourg – European Financial Stability Facility today held a tap via auction. The reopening was in relation to a 3-year bond which was initially placed on 24 May 2012 for an amount of €3 billion. Today’s auction raised an additional €1.48 billion. Investor demand was high with over €5.47 billion in bids received.

The weighted average price was 101.63% and the average yield was 0.54%. The bid/cover ratio was 3.7.

Luxembourg - The European Financial Stability Facility takes note of the decision by Moody’s to change the outlook on the provisional Aaa long-term rating of the EFSF to negative from stable. The rating outlook has a time horizon of 12-18 months and therefore does not indicate any rating action for EFSF in the immediate future.

Luxembourg – European Financial Stability Facility today placed a €6 billion 5-year benchmark bond maturing on 15 September 2017. The issuance spread at reoffer was fixed at mid swap plus 50 basis points. This implies a reoffer yield for investors of 1.652%.

Today's issue was met with very strong demand with close to €8 billion in orders received from investors worldwide.

Crédit Agricole CIB, Morgan Stanley and UniCredit acted as lead managers for this issue and Deutsche Finanzagentur acted as Issuance Agent.