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31 December 2018

Eu­ro­pean fi­nan­cial as­sis­tance: ESM

Overview of the most important figures on the ESM financial assistance programmes updated on a regular basis (as of: 30 September 2018)

European Stability Mechanism (ESM)

The ESM was established by international treaty as an international financial institution. As a permanent Emergency Financing Mechanism, it replaced the temporary European Financial Stability Facility (EFSF). The ESM has capital stock totalling approximately €704.8 billion. This sum is made up of roughly €80.5 billion in paid-in capital and roughly €624.3 billion in callable capital. Each member state’s financing share in the ESM is based on its contribution to the European Central Bank’s capital, with fixed-term transitional provisions for some new member states.

Germany contributes roughly 27.0% of ESM financing. This can be broken down into roughly €21.7 billion of paid-in capital and roughly €168.3 billion of callable capital. Unlike in the case of the EFSF, Germany does not offer guarantees for the ESM’s financing operations. As set out in Annex II to the ESM Treaty, Germany’s liability risk in connection with the ESM is limited to a total of approximately €190.0 billion under all circumstances.

Graphic shwoing the utilisation of the ESM lending capacity

Utilisation and allocation of the ESM lending capacity

Programme commitments

(up to...)

Disbursement1

Repayment

Amount already utilised

Total ESM lending capacity

500.0

Spain1

100.0

41.3

-17.6

23.7

Cyprus1

9.0

6.3

-

6.3

Greece1

86.0

61.9

-2.0

59.9

Total

195.0

109.5

-19.6

89.9

Remaining ESM lending capacity2

410.1

Graphic showing the ESM programme volumes in € billion

Graphic showing the member states' sahres in ESM capital stock in %.

Spain – Programme overview

On 25 June 2012, Spain applied for financial assistance from the euro area member states to support its banks. The German Bundestag approved the programme for Spain at a special session on 19 July 2012. On 20 July 2012, the Eurogroup approved the bank programme. An 18-month programme with a maximum volume of €100 billion was agreed. After the European Commission and ECB’s implementation reports confirmed that the programme’s conditions were being met on schedule, a total of €41.3 billion were disbursed in the form of ESM notes to FROB, the Spanish bank recapitalisation fund (Fondo de Reestructuración Ordenada Bancaria). The programme for Spain ended on 23 January 2014. The amount disbursed was below the €100 billion limit.

The loans granted to Spain have an average term of 12.5 years. Spain must repay these loans in full between 2022 and 2027.

Current ESM programme volume in € billion

ESM

Total commitment (up to...)

100.0

Drawn

41.3

Not drawn

58.7

Repayments

-14.6

Total1

26.7

Cash flows in € billion

Date

Type

Purpose

Amount

11 December 2012

Disbursement of 1st tranche

Bank recapitalisation

39.5

5 February 2013

Disbursement of 2nd tranche

Bank recapitalisation

1.9

8 July 2014

Early partial repayment

Bank recapitalisation

-1.3

23 July 2014

Scheduled repayment

Bank recapitalisation

-0.3

17 March 2015

Early partial repayment

Bank recapitalisation

-1.5

14 July 2015

Early partial repayment

Bank recapitalisation

-2.5

11 November 2016

Early partial repayment

Bank recapitalisation

-1.0

14 June 2017

Early partial repayment

Bank recapitalisation

-1.0

16 November 2017

Early partial repayment

Bank recapitalisation

-2.0

23 February 2018

Early partial repayment

Bank recapitalisation

-2.0

23 May 2018

Early partial repayment

Bank recapitalisation

-3.0

16 October 2018

Early partial repayment

Bank recapitalisation

-3.0

Total1

23.7

Cyprus – Programme overview

Cyprus submitted a request for financial assistance from the EU in June 2012. On 15 and 24 March 2013, the Eurogroup agreed on the key elements of an assistance programme. The German Bundestag approved the programme for Cyprus on 18 April 2013, with conditionality covering the following key elements:

  1. Securing the stability of the financial sector
  2. Fiscal consolidation
  3. Structural reforms to enhance competitiveness and growth

In return for this, loans of up to €10 billion were committed to Cyprus, up to €9.0 billion from the ESM and SDR 1 0.9 billion from the IMF. The IMF programme for Cyprus ended on 7 March 2016. Approximately SDR1 0.1 billion were not disbursed. The ESM programme for Cyprus ended on 31 March 2016. In total, approximately €6.3 billion of ESM funds were disbursed.

The ESM loans granted to Cyprus have an average term of 14.9 years. Cyprus must repay these loans in full between 2025 and 2031.

Current ESM programme volume in € billion

ESM

Total commitment (up to...)

9.0

Drawn

6.3

Not drawn

2.7

Repayments

-

Total2

6.3

ESM disbursements in € billion

Date

Tranche

Purpose

Amount

13 May 2013

1st tranche (sub-tranche)

General programme funds

2.0

26 June 2013

1st tranche (sub-tranche)

General programme funds

1.0

27 September 2013

2nd tranche

Bank recapitalisation

1.5

19 December 2013

3rd tranche

General programme funds

0.1

4 April 2014

4th tranche

General programme funds

0.2

9 July 2014

5th tranche

General programme funds

0.6

15 December 2014

6th tranche

General programme funds

0.4

15 July 2015

7th tranche

General programme funds

0.1

8 October 2015

8th tranche

General programme funds

0.5

Total2

6.3

IMF programme volume in SDR billion

Amount

Total commitment (up to...)

0.9

Drawn

0.8

Not drawn

0.1

Early repayments

-0.2

Total 2

0.6

Greece – Programme overview

Greece applied for financial assistance from the ESM on 8 July 2015, following the expiry of the second macroeconomic adjustment programme on 30 June 2015. On 12 July 2015, the heads of state or government of the euro area countries agreed on minimum requirements for financial assistance. Greece could receive loans of up to €86 billion if it met certain conditions. On 1 August 2018, the German Bundestag released the fifth and final programme tranche, totalling €15.0 billion (€5.5 billion for debt servicing and €9.5 billion to build up a liquidity buffer). In total, €61.9 billion were disbursed to Greece under the third assistance programme. The third assistance programme for Greece ended on 20 August 2018.

The loans granted to Greece have an average term of 32.4 years. Greece must repay these loans in full between 2034 and 2060.

Cash flows in € billion

Date

Tranche

Purpose

Amount

20 August 2015

1st tranche

General programme funds

13.0

24 November 2015

1st tranche (sub-tranche)

General programme funds

2.0

1 December 2015

1st tranche (sub-tranche)

Bank recapitalisation

2.7

8 December 2015

1st tranche (sub-tranche)

Bank recapitalisation

2.7

23 December 2015

1st tranche (sub-tranche)

General programme funds

1.0

1st tranche subtotal1

21,4

21 June 2016

2nd tranche (sub-tranche)

Debt service

5.7

21 June 2016

2nd tranche (sub-tranche)

Reduction of arrears

1.8

26 October 2016

2nd tranche (sub-tranche)

Debt service

1.1

26 October 2016

2nd tranche (sub-tranche)

Reduction of arrears

1.7

2nd tranche subtotal1

10,3

10 July 2017

3rd tranche (sub-tranche)

Debt service

6.9

10 July 2017

3rd tranche (sub-tranche)

Reduction of arrears

0.8

30 October 2017

3rd tranche (sub-tranche)

Reduction of arrears

0.8

3rd tranche subtotal1

8,5

28 March 2018

4th tranche (sub-tranche)

Debt service

3.3

28 March 2018

4th tranche (sub-tranche)

Reduction of arrears

0.5

28 March 2018

4th tranche (sub-tranche)

Liquidity buffer

1.9

15 June 2018

4th tranche (sub-tranche)

Reduction of arrears

1.0

4th tranche subtotal1

6,7

6 August 2018

5th tranche (sub-tranche)

Debt service

5.5

6 August 2018

5th tranche (sub-tranche)

Liquidity buffer

9.5

5th tranche subtotal1

15,0

20 February 2017

Repayment

Bank recapitalisation

-2.0

Total1

59.9

Current ESM programme volume in € billion

ESM

Total commitment (up to...)

86.0

Drawn

61.9

Not drawn

24.1

Repayments

-2.0

Current programme volume1

59.9