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Luxembourg – The European Financial Stability Facility disbursed today €4.2 billion to Greece. This follows the approval by the EFSF Board of Directors on 15 May. The funds were transferred in cash and the maturity of the loan is 17 May 2043.
Luxembourg – The European Financial Stability Facility today placed a €5 billion 10-year benchmark bond maturing on 23 May 2023. The issuance spread at reoffer was fixed at mid swap plus 32 basis points. This implies a reoffer yield for investors of 1.927%.
BNP Paribas, Deutsche Bank and J.P. Morgan acted as lead managers for this issue.
Today's issue has drawn strong demand, with more than €6.5 billion in orders received from investors worldwide.
Luxembourg – The Board of Directors of the European Stability Mechanism (ESM) approved the Financial Assistance Facility Agreement and the disbursement of the first tranche of financial assistance to the Republic of Cyprus. The first tranche is transferred in two separate disbursements: the first – of €2 billion has been transferred today, and the second – of up to €1 billion to be transferred before 30 June 2013. Both disbursements will be made in cash, and will be used for the general financing needs of the public sector (roll-over of maturing debt) and fiscal needs.
Luxembourg – As foreseen, the 17 Member States of the euro area transferred the third tranche of paid-in capital to the ESM by 30 April 2013. The total amount of ESM paid-in capital has therefore gone up from around €32 billion to €48 billion. The two remaining tranches will be transferred by the Member States in October 2013 and April 2014. Upon payment of the final tranche, the ESM will have a paid-in capital of €80 billion, becoming the international financial institution with the highest paid-in capital worldwide.
Luxembourg – The Board of Governors of the European Stability Mechanism (ESM) decided today to grant, in principle, stability support in the form of a financial assistance facility to the Republic of Cyprus. In accordance with the decisions taken by the Eurogroup on 25 March 2013, Cyprus will receive assistance of up to €10 billion. The ESM is expected to provide approximately €9 billion, subject to approval by its Board of Directors, and the International Monetary Fund is to contribute around €1 billion, subject to approval by its Executive Board.
Interview with Christophe Frankel, CFO and Deputy Managing Director of ESM / CFO and Deputy CEO of EFSF
Market News International (MNI), London Bureau, 22/04/2013
By David Thomas and Nick Shamim
MNI: "One general operational question - are EFSF/ESM bond issues earmarked for particular bailout countries or purposes? If so - which country was this week's 3-year tap assigned to?"
Luxembourg – The European Financial Stability Facility today tapped a 7-year bond, initially placed on 15 January 2013 maturing on 22 January 2020 for an amount of €2 billion. This tap brings the total size of the issue to €8 billion.
The issuance spread at reoffer was fixed at mid swap plus 19 basis points. This implies a reoffer yield for investors of 1.251%.
Bank of America Merrill Lynch, Citi and DZ Bank acted as lead managers for this tap.
The Way Forward for the Eurozone and Europe: A Conversation with European Policymakers
The issuance spread at reoffer was fixed at mid swap minus 10 basis points. This implies a reoffer yield for investors of 0.381%
Credit Agricole CIB, JP Morgan and LBBW acted as lead managers for this tap.
Joint Op-ed by JEROEN DIJSSELBLOEM, OLLI REHN, JÖRG ASMUSSEN, KLAUS REGLING and WERNER HOYER
Published: April 17, 2013 in the International Herald Tribune and the New York Times
The current crisis has exposed both fiscal and macroeconomic imbalances caused by a lack of reforms in several euro zone countries as well as structural problems in the institutional set-up of Europe’s economic and monetary union. But in the eye of the storm, we strengthened the foundations of our currency and improved the sustainability of our economies.