Overview of the European financial assistance programmes (as of: 31 January 2016)

Transcription

1 Overview of the European financial assistance programmes (as of: 31 January 2016) Overview of the most important figures on European financial assistance under the European Financial Stability Facility (EFSF), the European Financial Stabilisation Mechanism (EFSM) and the European Stability Mechanism (ESM) updated on a monthly basis. European financial assistance: EFSF and EFSM Deployed funds of the European Financial Stability Facility (EFSF) 1

2 Deployed EFSF funds lending capacity in bn EFSF effective lending capacity 440bn Total committed Already disbursed Remaining available Ireland Portugal Greece * Liquidity buffer Total loan commitments for programmes *The EFSF programme for Greece expired on 30 June The remaining programme funds are no longer available. 2

3 Utilisation of the EFSF programme 3

4 German guarantee facility under national legislation 4

5 Programme volumes 5

6 Ireland Programme overview Note: Irish programme was concluded on schedule in December

7 Volume of the programmes in bn EFSF EFSM IMF* Bilateral** Total for programmes*** Disbursed Undisbursed programme funds Total *The total for the IMF funds is subject to fluctuations in the exchange rate. The exchange rates at the time of disbursement were used for this table. **United Kingdom, Sweden, Denmark ***These figures do not include Irish funds totalling 17.4bn, which brings the total volume for the programmes to 85bn. For information purposes only: Repayments to the IMF in billion XDR* Disbursed 19.5 Repaid 15.7 Remaining amount to be repaid 3.8 *Special drawing rights (currency code: XDR) are a principal reserve asset created by the IMF. They are used as a means of payment in financial relations between the IMF and its member states. The value of special drawing rights is determined using a basket of currencies which includes the most important currencies used in international trade. 7

8 Tranche payments in bn EFSF/EFSM IMF* Bilateral Irish funds** Total per quarter December Q Q Q Q Q Q Q Q Q Q Q Q Total*** *The total for the IMF funds is subject to fluctuations in the exchange rate. **Includes Ireland s cash reserves and assets from the National Pensions Reserve Fund. A minus sign indicates an improvement in Ireland s cash position. ***Total figures may contain rounding differences 8

9 EFSM funds* for Ireland Borrowing in bn Maturity in years Disbursement date Amount disbursed January March May September October January March July October March *Germany s share of the EFSM corresponds to its share of the EU budget, around 20% 9

10 Portugal Programme overview Note: Programme was concluded on schedule in May

11 Volume of the programmes in bn EFSF EFSM 1) IMF 1)2) Total for programmes Disbursed Undisbursed programme funds Total ) Portugal will no longer use the remaining unreleased volume of 1.7bn (EFSM) and 0.9bn (IMF). 2) The total for the IMF funds is subject to fluctuations in the exchange rate. The exchange rates at the time of disbursement were used for this table. For information purposes only: Repayments to the IMF in billion XDR* Disbursed 22.9 Repaid 6.6 Remaining amount to be repaid 16.3 *Special drawing rights (currency code: XDR) are a principal reserve asset created by the IMF. They are used as a means of payment in financial relations between the IMF and its member states. The value of special drawing rights is determined using a basket of currencies which includes the most important currencies used in international trade. 11

12 Tranche payments in bn EFSF/EFSM IMF* Amount per quarter June - September Q Q Q Q Q Q Q Q Q Q Q Q Total** *The total for the IMF funds is subject to fluctuations in the exchange rate. **Total figures may contain rounding differences 12

13 EFSM* funds for Portugal Borrowing in bn Maturity in years Disbursement date Amount disbursed May May September September September January April May October March November *Germany s share of the EFSM corresponds to its share of the EU budget, around 20% 13

14 Greece Programme overview A total of 73bn was paid out within the framework of the first programme for Greece (eurozone share: 52.9bn; IMF: 20.1bn = XDR 17.5bn). Germany s share of the European bilateral loans within the framework of the first programme totals 15.2bn. As of 31 January 2016, Greece had paid a total of around XDR 15.4bn to the IMF. This corresponds to around 19.5bn (using the exchange rate on 31 January 2016). The following information relates to the second programme: the EFSF programme expired on 30 June The remaining EFSF programme funds are no longer available. Greece s IMF programme ended on 15 January Around 17.0bn were left undisbursed. 14

15 Volume of the programmes in bn EFSF IMF* Total for programmes Disbursed Undisbursed programme funds Total** *The total for the IMF funds is subject to fluctuations in the exchange rate. The exchange rates at the time of disbursement were used for this table; remaining programme funds are shown at the exchange rate (30 September 2015). **Total figures may contain rounding differences For information purposes only: Repayments to the IMF within the framework of the second programme, in billion XDR* Disbursed 10.2 Repaid 0.0 Remaining amount to be repaid 10.2 *Special drawing rights (currency code: XDR) are a principal reserve asset created by the IMF. They are used as a means of payment in financial relations between the IMF and its member states. The value of special drawing rights is determined using a basket of currencies which includes the most important currencies used in international trade. 15

16 Tranche payments in bn EFSF IMF Amount per quarter* Q Q Q Q Q Q Q Q Q Q Q Q Q Total* 130.9** *Total figures may contain rounding differences. **Re-transfer on 27 February 2015 of 10.9 in EFSF funds as yet unused for the purpose of bank recapitalisation. 16

17 EFSF payments to Greece in bn Disbursed Total commitment Private-sector involvement* Accrued interest* Bank recapitalisation + general programme funds *Greece did not avail itself of the balance 17

18 European financial assistance: ESM Capital structure of the ESM The European Stability Mechanism (ESM) was established by international treaty as an international financial institution. As a permanent Emergency Financing Mechanism, it replaces the temporary European Financial Stability Facility (EFSF). Following Latvia s accession in 2014 and Lithuania s accession in 2015, the ESM has a capital stock of around 704.8bn. This is made up of around 80.5bn of paid-in capital and around 624.3bn of callable capital. The individual member states shares in the ESM financing are based on their share of capital in the European Central Bank (ECB), with fixed-term transitional provisions applicable to some new member states. Germany s share in the ESM financing is 26.96%. This amounts to around 21.7bn of paid-in capital and around 168.3bn of callable capital. Unlike under the EFSF, Germany does not offer guarantees for the ESM's financing operations. As set forth in Annex II to the ESM Treaty, Germany's risk of liability for the ESM is limited in all circumstances to a total of approximately 190.0bn. Since 30 April 2014, around 80.0bn in capital has been paid in by the ESM member states. The ESM has therefore reached its maximum lending capacity of 500.0bn. 18

19 Utilisation of the ESM lending capacity 19

20 Utilisation and allocation of the ESM lending capacity in bn Current ESM lending capacity Total commitment Already disbursed Repayments Current lending capacity Financial assistance commitments: Spain Cyprus Greece Total financial assistance commitments Remaining ESM lending capacity* *Total figures may contain variations due to rounding. 20

21 Spain Programme overview On 25 June 2012, Spain applied for financial assistance from the eurozone member states to support its banks. On 20 July 2012, the Eurogroup approved the bank programme. The programme was for a maximum volume of 100.0bn and had a duration of 18 months. All of the implementation reports from the European Commission and the ECB confirmed that the programme's conditions were being met on schedule, and a total of around 41.3bn was disbursed to the Spanish FROB bank recapitalisation fund (Fondo de Reestructuración Ordenada Bancaria) in the form of ESM notes. This means the amount disbursement was far below the ceiling of 100.0bn when the programme ended on 23 January Under the terms of the agreement, Spain was to start repayment in Spain repaid the ESM part of the financial assistance it received early ( 5.6bn), which means that its annual amortisation between 2022 and 2027 will be correspondingly lower. Programme volume in bn Already disbursed July 2014 Early repayment 23 July 2014 Scheduled repayment 17 March 2015 Early repayment 14 July 2015 Early repayment Outstanding repayments 35.7 Tranche payments in bn Tranche Disbursement date Amount disbursed 1 11 December February 2013 Total* *Total figures may contain variations due to rounding. 21

22 Cyprus Programme overview Cyprus submitted a request for financial assistance to the EU on 25 June 2012 and to the IMF on the following day. At the request of the Eurogroup, the Commission, ECB and IMF (Troika) prepared a Memorandum of Understanding (MoU) for an adjustment programme, with conditionality covering the following key elements: (1) securing the stability of the financial sector, (2) fiscal consolidation and (3) structural reforms to enhance competitiveness and growth. On 15 and 24 March 2013, the Eurogroup agreed on the main elements of an assistance programme. After the Troika had worked out the details of the programme for Cyprus, the German Bundestag gave its approval on 18 April The ESM adopted the adjustment programme on 8 May The programme provides financial assistance totalling 10.0bn (approximately 9.0bn from the ESM, and approximately 1.0bn from the IMF = XDR 0.9bn). The programme began in the second quarter of 2013 and runs until the first quarter of Programme volume in bn ESM IMF* Programme total in bn Already disbursed Still available Total** *The total for funding from the IMF is subject to exchange-rate fluctuations. The exchange rates at the time of disbursement were used for this table; remaining programme funds are shown at the current exchange rate. **Total figures may contain variations due to rounding. 22

23 Disbursements to date by the ESM Tranche Disbursement date Amount disbursed in bn 1 (first part) 13 May (second part) 26 June September December April July December July October Total 6.3 ESM payments to Cyprus Already disbursed Total commitment in bn General programme funds Bank recapitalisation Total

24 Disbursements to date by the IMF IMF in bn Q Q Q Q Q Q Q Q Total* 0.95 *Total figures may contain variations due to rounding. 24

25 Greece programme overview Following Greece s application for financial assistance to the ESM on 8 July 2015, the ESM Board of Governors approved an ESM loan of up to 86.0bn on 19 August The Bundestag approved disbursement of the first tranche of 26.0bn on 19 August Of this 26.0bn, 10.0bn are intended for bank recapitalisation and resolution operations). Programme volume ESM in bn 1 st tranche 26.0 Still available 60.0 Total 86.0 ESM disbursements Tranche 1 st tranche 1 st subtranche 2 nd subtranche Disbursement date 20 August 2015 Use Banks* August 2015 General programme funds 13.0 Amount disbursed (in bn) November 2015 General programme funds December 2015 General programme funds Total * Funds for bank recapitalisation or resolution where made available in the form of ESM loans in a segregated account, from which, following approval by the ESM Board of Directors, they can be disbursed for specific recapitalisation/resolution measures of up to 10.0bn. 25

26 ESM disbursements to Greece Bank recapitalisation and resolution* (1 st sub-tranche) in bn General programme funds (2 nd sub-tranche) 20 August November December December December Amount disbursed Total commitment * Funds for bank recapitalisation or resolution where made available in the form of ESM loans in a segregated account, from which, following approval by the ESM Board of Directors, they can be disbursed for specific recapitalisation/resolution measures of up to 10.0bn. 26