EFSF : European Financial Stability Facility

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Thread dedicato al provvisorio e cosiddetto "Fondo Salva-Stati" ...

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About EFSF

The European Financial Stability Facility (EFSF) was created by the euro area Member States following the decisions taken on 9 May 2010 within the framework of the Ecofin Council.

The EFSF’s mandate is to safeguard financial stability in Europe by providing financial assistance to euro area Member States.

EFSF is authorised to use the following instruments linked to appropriate conditionality:

Provide loans to countries in financial difficulties
Intervene in the debt primary and secondary markets. Intervention in the secondary market will be only on the basis of an ECB analysis recognising the existence of exceptional financial market circumstances and risks to financial stability
Act on the basis of a precautionary programme
Finance recapitalisations of financial institutions through loans to governments
To fulfill its mission, EFSF issues bonds or other debt instruments on the capital markets.

EFSF is backed by guarantee commitments from the euro area Member States for a total of €780 billion and has a lending capacity of €440 billion.

EFSF has been assigned the best possible credit rating; AAA by Standard & Poor’s and Fitch Ratings, Aaa by Moody’s.

EFSF is a Luxembourg-registered company owned by Euro Area Member States. It is headed by Klaus Regling, former Director-General for economic and financial affairs at the European Commission.

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EFSF places €3 billion bond in support of Ireland
Date: 07 November 2011

Frankfurt am Main – European Financial Stability Facility today placed a €3 billion long 10-year benchmark bond maturing on 4 February 2022 to fund the EFSF’s second disbursement as part of the financial assistance programme to Ireland.

The issuance spread at reoffer was fixed at mid swap plus 104 basis points. This implies a reoffer yield for investors of 3.591%.

In spite of the recent market volatility, the issue was met with solid demand with orders received in excess of €3 billion from real money investors around the world.

Klaus Regling, CEO of EFSF commented “I am pleased that the EFSF has again attracted investors from all over the world with a satisfactory overall amount despite a difficult market environment”.

Following Ireland’s request, the funds for an amount of €3 billion will be disbursed to Ireland on 10 November. This is the first issue made following the ratification of the amendments to the EFSF’s framework which include an improved credit enhancement structure.

Barclays, Credit Agricole CIB and J.P. Morgan acted as lead managers for this issue and Deutsche Finanzagentur acted as Issuance Agent.
Christophe Frankel, Deputy CEO and CFO stated “since our first launch in January of this year, EFSF has established itself as a high quality issuer with a solid investor base”.

About EFSF

The European Financial Stability Facility (EFSF) was incorporated in Luxembourg on 7 June 2010. Its objective is to preserve financial stability of Europe’s Economic and Monetary Union by providing financial assistance to euro area Member States in difficulty. In order to fulfil its mission, the EFSF is authorised to issue bonds or other debt instruments on the market to raise the funds needed to provide loans to countries in financial difficulties, intervene in the debt primary and secondary markets, act on the basis of a precautionary programme and finance recapitalisations of financial institutions through loans to governments including in non-programme countries. All financial assistance to Member States is linked to appropriate conditionality. EFSF issues are backed by guarantees given by euro area Member States of up to €780 billion. EFSF has a lending capacity of €440 billion.

EFSF is part of the European financial stability package. Its funds are combined with loans of up to €60 billion coming from the European Financial Stabilisation Mechanism (EFSM), i.e. funds raised by the European Commission and guaranteed by the EU budget, and up to €250 billion from the International Monetary Fund (IMF). Any financial assistance by EFSF, EFSM and IMF to a country in need is linked to strict policy conditions.

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Maximising EFSF’s capacity approved
Date: 29 November 2011

Brussels/Luxembourg – Euro area Finance Ministers agreed on 29 November on the terms and conditions to extend EFSF’s capacity by introducing sovereign bond partial risk participation and a Co-Investment approach. Ministers also adopted amended EFSF guidelines concerning intervention in the primary and secondary debt markets and precautionary credit lines in order to use leverage. Klaus Regling CEO of EFSF commented “Both options are designed to enlarge the capacity of the EFSF so that the new instruments available to the EFSF can be used efficiently”.

Under the partial risk protection, EFSF would provide a partial protection certificate to a newly issued bond of a Member State. The certificate could be detached after initial issue and could be traded separately. It would give the holder an amount of fixed credit protection of 20-30% of the principal amount of the sovereign bond. The partial risk protection is to be used primarily under precautionary programmes and is aimed at increasing demand for new issues of Member States and lowering funding costs.

Under option two, the creation of one or more Co-Investment Funds (CIF) would allow the combination of public and private funding. A CIF would purchase bonds in the primary and/or secondary markets. Where the CIF would provide funding directly to Member States through the purchase of primary bonds, this funding could, inter alia, be used by Member States for bank recapitalisation. The CIF would comprise a first loss tranche which would be financed by EFSF.

Chris Frankel CFO and Deputy CEO of EFSF commented “Following extensive discussions with investors covering all types and geographical regions, a number of them have given their positive views and signalled their willingness to participate.”

EFSF will now implement these two approaches to be ready early in 2012 to use them effectively in the context of the guidelines for the new instruments on market interventions.

EFSF will be able to use both leverage options simultaneously. The final amount of “firepower” achieved through the use of the options will depend upon the concrete use and mix of the instruments and particularly the exact degree of protection between 20% and 30%. EFSF has currently a lending capacity of €440 billion and firm commitments regarding Ireland and Portugal totalling €43.7 billion.

EFSF is also expected to finance a second aid programme for Greece and fulfil tasks such as financing recapitalisation of financial institutions in non-programme countries. Without knowing the exact amounts needed, EFSF should be able to leverage own resources of up to €250 billion. Deployment of either instrument using leverage will only be made following a request from a Member State. Any support from the EFSF will be linked to strict policy conditionality, monitoring and surveillance procedures.

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EFSF launches short-term funding programme
Date: 07 December 2011

Luxembourg – In order to increase flexibility in its funding strategy, EFSF announces the launch of a short-term funding programme focusing on 3, 6 and 12 month bills. Other bill tenors may be developed in time. The first auction is expected to take place before year end.

Klaus Regling, CEO of EFSF stated “The launch of a short-term funding programme is in line with the enlarged scope of activity of EFSF to use its new instruments efficiently.” He also underlined: “The bill programme will not substitute the long-term bond programme, but it will add flexibility to it.”

As part of the EFSF’s regular debt issuance programme and exclusively in euro, bill auctions will be open to all members of the EFSF Market Group currently comprising 47 international institutions1. As with EFSF’s bond issuance, the auctions will be carried out by the German debt management office (Finanzagentur) using EFSF’s bidding system “EBS”. EBS is based on the Bund Bidding System (BBS) of Deutsche Bundesbank, which has long-standing experience in German bond and bill auctions.

EFSF has been assigned the highest quality short–term rating by all three rating agencies – Standard & Poor’s “A-1+”, Moody’s (P) P-1 and Fitch Ratings “F1+(exp)”.

Christophe Frankel, Deputy CEO and CFO of EFSF commented “by introducing this programme, we will now provide our investors with the opportunity of investing across the full yield curve”.

About EFSF
The European Financial Stability Facility (EFSF) was incorporated in Luxembourg on 7 June 2010. Its objective is to preserve financial stability of Europe’s Economic and Monetary Union by providing financial assistance to euro area Member States in difficulty. In order to fulfil its mission, the EFSF is authorised to issue bonds or other debt instruments on the market to raise funds needed to provide loans to countries in financial difficulties, intervene in the debt primary and secondary markets, act on the basis of a precautionary programme and finance recapitalisations of financial institutions through loans to governments including in non-programme countries. All financial assistance to Member States is linked to appropriate conditionality. EFSF issues are backed by guarantees given by euro area Member States of up to €780 billion. EFSF has a lending capacity of €440 billion.

EFSF is part of the European financial stability package. Its funds are combined with loans of up to €60 billion coming from the European Financial Stabilisation Mechanism (EFSM), i.e. funds raised by the European Commission and guaranteed by the EU budget and up to €250 billion from the International Monetary Fund (IMF). Any financial assistance by EFSF, EFSM and IMF to a country in need is linked to strict policy conditions.

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EFSF holds first bill auction
Date: 13 December 2011

Frankfurt am Main – As part of its short-term funding programme, European Financial Stability Facility today held its first bill auction. The auction was met with very strong demand attracting over €6.2 billion in bids of which over €2 billion were non-competitive. The bid/cover ratio was 3.2.

EFSF sold €1.971 billion in 3-month bills. The average price for the EFSF 3-month bills was 99.94386% with a maturity date of 15 March 2012 (91 interest days). The weighted average yield was 0.2222%. Settlement is 15 December 2011 (T+2).

Christophe Frankel, CFO and Deputy CEO commented “This programme will not only extend our range of issues to the short-term, but it will increase the flexibility of the whole funding strategy”.

The auction was carried out by the German Finance Agency (Finanzagentur) using the Deutsche Bundesbank’s EFSF bidding system “EBS”.

EFSF aims to hold regular bill auctions and the calendar for 2012 is expected to be released early next year.

About EFSF
The European Financial Stability Facility (EFSF) was incorporated in Luxembourg on 7 June 2010. Its objective is to preserve financial stability of Europe’s Economic and Monetary Union by providing financial assistance to euro area Member States in difficulty. In order to fulfil its mission, the EFSF is authorised to issue bonds or other debt instruments on the market to raise funds needed to provide loans to countries in financial difficulties, intervene in the debt primary and secondary markets, act on the basis of a precautionary programme and finance recapitalisations of financial institutions through loans to governments including in non-programme countries. All financial assistance to Member States is linked to appropriate conditionality. EFSF issues area backed by guarantees given by euro area Member States of up to €780 billion. EFSF has a lending capacity of €440 billion.

EFSF is part of the European financial stability package. Its funds are combined with loans of up to €60 billion coming from the European Financial Stabilisation Mechanism (EFSM), i.e. funds raised by the European Commission and guaranteed by the EU budget and up to €250 billion from the International Monetary Fund (IMF). Any financial assistance by EFSF, EFSM and IMF to a country in need is linked to strict policy conditions.

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Le risorse dell'Efsf sono superiori alle necessità di Italia e Spagna

Annalisa Vilardo

Milano Finanza - 16.12.2011
L'Europa e gli organismi internazionali hanno risorse anti-crisi ben superiori alle necessità di finanziamento di Italia e Spagna per il 2012. "Se Italia e Spagna non avessero più accesso ai mercati, cosa che non credo, disponiamo della possibilità di mobilizzare risorse per 600 miliardi di euro", ha assicurato il direttore del fondo salva stati europeo (Efsf), Klaus Regling. Con queste affermazioni il direttore ha voluto contestare le tesi di stampa secondo cui l'Ue non avrebbe risorse sufficienti a contrastare la crisi sui debiti pubblici.

Il numero uno dell'Efsf ha poi ricordato come la potenza di fuoco del fondo che ammonta a 440 miliardi, di cui 44 usati per Irlanda e Portogallo e 100 destinati alla Grecia, può arrivare con la leva a 600 miliardi e, conteggiando anche le risorse dell'Fmi, della Bce e degli stati nazionali, addirittura a 1.000 miliardi.

Regling inoltre ha sintetizzato in sette punti i motivi della crisi del debito sovrano e ha indicato come la nascita delle tre autorità europee, Esma, Eba ed Efsf, per la sorveglianza sui mercati finanziari abbia rappresentato un importante passo in avanti per farvi fronte.

"Sono in corso i negoziati" per un ulteriore rafforzamento della "facility", ha concluso Regling, ricordando che l'Europa "cerca anche investitori privati per aumentare le capacità del fondo. Siamo sulla strada dell'unione fiscale, anche se non sappiamo bene cosa significhi".

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Efsf toglie da prospetto bond clausola fine zona euro - fonte

MILANO, 16 dicembre 2011 (Reuters)
Il fondo salva-Stati della zona euro Efsf, European Financial Stability facility, rimuoverà dalla bozza del prospetto sulle nuove emissioni una clausola che prevede il possibile scioglimento dell'Unione Monetaria.

Lo riferisce una fonte del fondo, la cui iniziativa sottolinea il clima di crescente sensibilità sul tema da parte dei funzionari UE.

Secondo l'edizione di ieri del "Financial Times" la bozza del prospetto prevede un esplicito monito agli investitori in cui si direbbe che l'Unione Monetaria Europea potrebbe essere sciolta.

"Il riferimento alla possibile rottura della zona euro era tra parentesi quadre nel testo della bozza e verrà rimosso" dice a Reuters la fonte.

[raffio]

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Originalmente inviato da raffio

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