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The European Stability Mechanism (ESM) will launch 3-months Bills of the European Stability Mechanism (ESM) by auction. An issue volume up to EUR 1.1 billion is envisaged.

Time schedule of the auction procedure:
Date of invitation to bid: Monday, 3 March 2025
Bidding period: Tuesday, 4 March 2025, from 8:00 a.m. until 12:30 p.m. CET
Value date: Thursday, 6 March 2025

European governments adopted economic support packages totalling €1.29 trillion when the Covid-19 pandemic struck in early 2020, triggering a quantum leap in the issuance of European bonds. The first package, worth an estimated €540 billion, involved the European Stability Mechanism (ESM), the European Investment Bank, and the European Commission. The second, Next Generation EU, has a combined firepower of €750 billion in grants and loans. [1]

Presentation "Climate change and financial stability" by ESM Chief Economist Rolf Strauch at University College Dublin, as part of the series of lectures "ESM Youth Talk".

The result of the auction of 18 February 2025 for the 6-months Bills of the ESM was as follows:
Total Bids: € 3,880.00 mn
Competitive bids € 883.00 mn
Non-competitive bids € 2,997.00 mn
Allotment / Issue volume € 1,099.37 mn

Non-performing loans have several negative effects on banks’ balance sheet. Banks consider a loan as “non-performing” when a borrower fails to honour the scheduled payments of principal or interest for a specified period. In the euro area, NPLs peaked in 2014 (8% of all loans) when severe economic downturns brought on by the global financial crisis and the European sovereign debt crisis spiked unemployment rates and stifled borrowers’ repayment capacity.