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On 12 April at an informal meeting in Dublin, ministers agreed in principle to lengthen the maturities of loans granted to Ireland and Portugal under the EFSM and the European Financial Stability Facility (EFSF). This involves increasing the average maturity by seven years, from 12.5 years to 19.5 years, in order to smoothen the countries' debt redemption profiles and lower their refinancing needs in the period subsequent to their economic adjustment programmes.
The aim is to support the two countries' efforts to regain full access to market financing and thus to successfully exit their economic adjustment programmes. Both programmes are broadly on track, despite challenging macro-economic circumstances, and have already been successful in addressing imbalances. Although at different stages of their respective programmes, both countries have taken successful steps in re-entering the markets.
The decisions adopted by the Council amend decisions 2011/77/EU and 2011/344/EU on EFSM loans to Ireland and Portugal. Parallel decisions are due to be taken by the EFSF board of governors as concerns loans from the EFSF.
The decisions authorise the Commission, at the request of the respective country, to extend the maturity of instalments and tranches, and to refinance all or part of its borrowing for that purpose.
As concerns Ireland, the loans are part of a €85 billion package of financial assistance agreed by international and bilateral lenders in November 2010. EFSM loans amount to €22.5 billion.
For Portugal, the loans are part of a €78 billion package agreed in May 2011, shared equally (€26 billion each) by the EFSM, the EFSF and the IMF.