European Financial Stability Facility
The European Financial Stability Facility was established in 2010 as a temporary rescue mechanism to safeguard financial stability in Europe by providing financial assistance to selected Euro zone Member States.
The EFSF provided assistance to Ireland, Portugal and Greece.
The EFSF's role in providing further financial assistance was replaced by the European Stability Mechanism (ESM) in 2012.
However, the EFSF continues to operate in order to:
- Receive loan repayments from Ireland, Portugal and Greece.
- Make interest and principal payments to holders of EFSF bonds.
- Roll over outstanding EFSF bonds, as the maturity of loans provided to Ireland, Portugal and Greece is longer than the maturity of outstanding bonds issued by the EFSF.