In terms of short-term funding, ESM will launch its bill programme in January 2013. It will offer regular bill auctions to be held on Tuesdays. The ESM bill programme will replace the existing EFSF bill programme. EFSF will therefore no longer hold bill auctions and maturing EFSF bills will be financed via long-term funding or through the proceeds of ESM bills.
In terms of long-term funding, EFSF will continue to finance the macro-economic adjustment programmes for Ireland, Portugal and Greece. In 2013, EFSF is expected to raise between €55 and €60 billion in long-term issuance in order to finance disbursement to these three beneficiary Member States and to finance the rollover of existing maturities.
The first financial assistance was provided by ESM on 13 December when it launched 2 bills and 3 floating rate notes for a total amount of close to €39.5 billion for the recapitalisation of the Spanish banking sector. For 2013, ESM will finance the rollover of the two bills mentioned above for an amount of €8.968 billion. The ESM will also be responsible for the financing of future macro-economic assistance programmes. The ESM bill programme is expected to cover funding needs for the first half of the year with an inaugural bond issuance expected from ESM in the second half.
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© EFSF - European Financial Stability Facility
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