European Financial Stability Facility: Difference between revisions
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imported>Doug Williamson m (Organisation check 5/5/13 - Changed first line as this was a temporary measure. Last line, now replaced by European Stability Mechanism with added caveat re: Greece, Portugal and Ireland.) |
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(EFSF). | (EFSF). | ||
The European Financial Stability Facility was established in 2010. | The European Financial Stability Facility was established in 2010 as a temporary rescue mechanism. | ||
The EFSF’s mandate is to safeguard financial stability in Europe by providing financial assistance to Euro zone Member States. | The EFSF’s mandate is to safeguard financial stability in Europe by providing financial assistance to Euro zone Member States. | ||
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The EFSF is backed by guarantee commitments from the Euro zone Member States. | The EFSF is backed by guarantee commitments from the Euro zone Member States. | ||
This Facility was replaced by the European Stability Mechanism (ESM) in 2012 which finances new programmes. However, it continues to be used for the ongoing programmes in Greece, Portugal and Ireland. | |||
== See also == | == See also == | ||
* [[euro zone]] | * [[euro zone]] | ||
* [[Stability Bond]] | * [[Stability Bond]] | ||
Revision as of 14:18, 5 May 2013
(EFSF). The European Financial Stability Facility was established in 2010 as a temporary rescue mechanism.
The EFSF’s mandate is to safeguard financial stability in Europe by providing financial assistance to Euro zone Member States.
The EFSF is authorised to use instruments and techniques including:
1. Lending to countries in financial difficulties.
2. Intervening in the debt primary and secondary markets.
3. Financing recapitalisations of banks and other financial institutions through loans to governments.
To fulfill its mission, the EFSF issues bonds or other debt instruments on the capital markets.
The EFSF is backed by guarantee commitments from the Euro zone Member States.
This Facility was replaced by the European Stability Mechanism (ESM) in 2012 which finances new programmes. However, it continues to be used for the ongoing programmes in Greece, Portugal and Ireland.
