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.
|
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 |
|||
| 1 All programmes have ended. Undisbursed funds can no longer be drawn. | ||||
| 2 Any discrepancies in totals are due to rounding. | ||||
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.
|
ESM |
|
|---|---|
| Total commitment (up to...) |
100.0 |
| Drawn |
41.3 |
| Not drawn |
58.7 |
| Repayments |
-14.6 |
| Total1 |
26.7 |
| 1 Any discrepancies in totals are due to rounding. | |
|
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 |
||
| 1 Any discrepancies in totals are due to rounding. | |||
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:
- Securing the stability of the financial sector
- Fiscal consolidation
- 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.
|
ESM |
|
|---|---|
| Total commitment (up to...) |
9.0 |
| Drawn |
6.3 |
| Not drawn |
2.7 |
| Repayments |
- |
| Total2 |
6.3 |
| 2Any discrepancies in totals are due to rounding. | |
|
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 |
||
|
1Special drawing rights (SDRs) are the means of payment used between the IMF and its member states. They are an international reserve asset created by the IMF. SDRs are subject to currency fluctuations. |
|||
| 2Any discrepancies in totals are due to rounding. | |||
|
Amount |
|
|---|---|
| Total commitment (up to...) |
0.9 |
| Drawn |
0.8 |
| Not drawn |
0.1 |
| Early repayments |
-0.2 |
| Total 2 |
0.6 |
|
1Special drawing rights (SDRs) are the means of payment used between the IMF and its member states. They are an international reserve asset created by the IMF. SDRs are subject to currency fluctuations. |
|
| 2Any discrepancies in totals are due to rounding. | |
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.
|
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 |
||
| 1Any discrepancies in totals are due to rounding. | |||
|
ESM |
|
|---|---|
|
Total commitment (up to...) |
86.0 |
|
Drawn |
61.9 |
|
Not drawn |
24.1 |
|
Repayments |
-2.0 |
|
Current programme volume1 |
59.9 |
| 1Any discrepancies in totals are due to rounding. | |