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ESM Firepower
Klaus Regling: “90 percent of the European Stability Mechanism’s lending capacity is uncommitted, unused, available in case of need and I think this is also reassuring for markets: a lot of firepower is left.” Regling says that “the ESM fireposer is indeed enough to finance also a large country if there is a need”. Nevertheless, “isolated voices that paint a horror scenario have been proven wrong again and again”.
Luxembourg – The European Financial Stability Facility (EFSF) today placed a €4 billion 5-year benchmark bond maturing on 31 July 2018. The issuance spread was fixed at mid swap plus 15 basis points. This implies a reoffer yield for investors of 1,331%.
Barclays, Citi and Credit Suisse acted as lead managers for this issue.
Today's issue was met with solid demand, with more than €6.1 billion in orders received from investors worldwide.
Entrevista com Klaus Regling, Diretor Executivo do Mecanismo Europeu de Estabilidade (ESM)
Valor Econômico, 16 de julho de 2013
Valor: Por que buscar investidores no Brasil agora?
Klaus Regling: Visitamos investidores em torno do mundo todo o tempo. E essa visita faz parte de nossos "roadshows". Tivemos de cancelar uma viagem ao Brasil no ano passado, porque reuniões importantes foram marcadas em Bruxelas. Agora é realmente um bom momento para ir e conversar com grandes investidores, do setor privado e do setor público.
Luxembourg – The European Financial Stability Facility (EFSF) today placed a €5 billion 7-year benchmark bond maturing on 17 July 2020. The issuance spread at reoffer was fixed at mid swap plus 26 basis points. This implies a reoffer yield for investors of 1.755%.
Deutsche Bank, Goldman Sachs International and Natixis acted as lead managers for this issue.
Today's issue has drawn strong demand, with more than €6.7 billion in orders received from investors worldwide.
NIKKEI interview article on 8 July 2013 with Mr. Klaus Regling, Managing Director of the European Stability Mechanism
Interview by Mikio Sugeno, Senior Correspondent
The euro area economy has been suffering from the recession for six successive quarters because of the harsh austerity measures. What’s your view?
Luxembourg – As of 1 July 2013, the European Stability Mechanism (ESM) is the sole and permanent mechanism for responding to new requests for financial assistance by euro area Member States. Starting that day the European Financial Stability Facility (EFSF) may no longer engage in new financing programmes or enter into new loan facility agreements.
Klaus Regling, Managing Director of the ESM and CEO of the EFSF said: “Today an important chapter of the EFSF ends and all potential new tasks will be taken over by the ESM, the only rescue fund of the currency union”.
Luxembourg – The European Financial Stability Facility (EFSF) disbursed today €2.1 billion to Portugal. The funds were transferred in cash with an average maturity of 20.5 years.
“As the programme is reaching its final stage, it is paramount that Portugal keeps the pace of reform to ensure a successful exit strategy and the continued support of its European partners” said Klaus Regling, the CEO of the EFSF.
With today’s disbursement, Portugal has now received from the EFSF €21.1 billion out of the total committed amount of €26 billion.
Luxembourg – The European Stability Mechanism (ESM) disbursed today €1 billion to the Republic of Cyprus, completing the first tranche of the country’s financial assistance programme. The first part of this tranche (€2 billion) was transferred on 13 May 2013. Both disbursements were made in cash and cover fiscal needs and the roll-over of maturing debt.
As decided by the ESM Board of Governors on 24 April 2013, Cyprus will receive financial assistance from the ESM of up to €9 billion during the next three years.
Luxembourg – The European Financial Stability Facility disbursed today €3.3 billion to Greece for budget financing and debt servicing needs. The funds were transferred in cash and the loan has a maturity of 32 years.
This disbursement constitutes the second tranche that completes the fourth EFSF instalment amounting to €7.5 billion. Greece has now received from the EFSF €130.6 billion out of the total committed amount of €144.6 billion.
Luxembourg – The Board of Directors of the European Financial Stability Facility (EFSF) decided today to extend the maturities of its loans to Ireland and Portugal in the context of their assistance programmes. The average weighted maturity for all loans by the EFSF to Ireland and Portugal will now be extended by up to seven years.