Factbox: The euro zone's ESM bailout fund

Reuters Finance 3 weeks ago

BRUSSELS (Reuters) - Proposals to reform the euro zone’s bailout fund are creating a political storm in Italy, where parties and institutions are battling over whether Rome should try to block the reform at the EU level.

Following are facts on the bailout fund, known as the European Stability Mechanism (ESM).

* The ESM bailout fund was set up by euro zone governments at the height of the sovereign debt crisis in 2012 to boost the single currency area’s ability to support governments cut off from debt markets.

* The ESM has a subscribed capital of 702 billion euros, of which 80 billion euros is paid-in, and 622 billion euros in callable capital. The ESM borrows cheaply on the market against that capital and lends on to governments in trouble.

* It can extend precautionary credit lines to governments running sound economic policies and cheaply lend to countries cut off from markets in exchange for reform programs.

* The bailout fund can also buy the bonds of a particular government directly at a primary auction or on the market, lend to governments for bank recapitalization or inject capital directly into a bank under very tight conditions.

* Under reforms currently under discussion, the fund would become the backstop for the EU resolution fund for failing banks. It also might mediate when asked between investors and a government in case of a debt restructuring and would assess a government’s ability to repay loans if it asked for a bailout.

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The New York Times › Finance › 3 weeks ago
Proposals to reform the euro zone's bailout fund are creating a political storm in Italy, where parties and institutions are battling over whether Rome should try to block the reform at the EU level.
One America News Network › Finance › 3 weeks ago
By Jan Strupczewski and Gavin Jones BRUSSELS/ROME (Reuters) - A political storm has erupted in Italy over reform of the euro zone's bailout fund, known as the European Stability Mechanism (ESM).
Reuters › Finance › 3 weeks ago
A political storm has erupted in Italy over reform of the euro zone's bailout fund, known as the European Stability Mechanism (ESM).
The New York Times › Finance › 3 weeks ago
A political storm has erupted in Italy over reform of the euro zone's bailout fund, known as the European Stability Mechanism (ESM).
One America News Network › Finance › 3 weeks ago
MILAN (Reuters) - A proposed reform of the euro zone bailout fund (ESM) will not involve automatic debt restructuring for struggling countries, Germany's Finance Minister Olaf Scholz told Italian
The New York Times › Finance › 3 weeks ago
A proposed reform of the euro zone bailout fund (ESM) will not involve automatic debt restructuring for struggling countries, Germany's Finance Minister Olaf Scholz told Italian daily newspaper La Repubblica.
Reuters › Finance › 3 weeks ago
Italy should use ongoing talks over the reform of the euro zone bailout fund, the ESM, to secure something for itself such as the appointment of an Italian to head the fund, Bank of Italy Deputy governor Fabio Panetta said on Saturday.
The New York Times › Finance › 3 weeks ago
Italy should use ongoing talks over the reform of the euro zone bailout fund, the ESM, to secure something for itself such as the appointment of an Italian to head the fund, Bank of Italy Deputy governor Fabio Panetta said on Saturday.
One America News Network › Finance › 3 weeks ago
MILAN (Reuters) - Italy should use ongoing talks over the reform of the euro zone bailout fund, the ESM, to secure something for itself such as the appointment of an Italian to head the fund, Bank of
The New York Times › Finance › 1 month ago
A slowdown in economic growth in the euro zone since last year may be sharper than expected, but that does not necessarily mean a recession is looming, Klaus Regling, head of the euro zone's bailout fund, said on Tuesday.
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