Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision 2011/77/EU on granting Union financial assistance to Ireland
Date: 2013-05-24
Institutions: European Commission
Subjects: Community loan, EU aid, Ireland, aid for restructuring, economic stabilisation, financial aid, long-term credit, reflation

EUROPEAN 
COMMISSION 

Brussels, 24.5.2013  
COM(2013) 320 final 

2013/0167 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision 2011/77/EU on granting Union financial assistance to 
Ireland 

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EXPLANATORY MEMORANDUM 

In  order  to  strengthen  the  sustainability  profile  of  the  economic  programme  to  Ireland  and 
ease the liquidity needs of the Irish government in the post-programme years, and in line with 
the  Statement  by  the  Eurogroup  and  Ecofin  Ministers  of  12  April  2013,  Council 
Implementing  Decision  2011/77/EU  on  granting  financial  assistance  to  Ireland  should  be 
amended. The amendments concern in particular the extension of the average maturity of the 
overall facility from “up to 12.5 years” to “up to 19.5 years” by extending the maturities of 
the individual disbursements. 

At the request of Ireland and market conditions permitting, the Commission may refinance all 
or part of its initial borrowing in order to extend the maturity of an instalment or a tranche, 
provided  that  the  maximum  average  maturity  of  19.5  years  is  respected.  Any  amounts 
borrowed  by  the  Commssion  in  advance  shall  be  kept  on  an  account  with  the  ECB  that  the 
Commission  has  opened  for  the  administration  of  the  financial  assistance.  The  Commission 
will also make sure that the maturity at which the refinancing operations are made caters for 
the  proper  management  of  the  margin  under  the  EU  Own  Resouces  ceiling,  including  the 
redemption  profile  of  the  EU  bonds..  The  refinancing  operations  are  expected  to  take  place 
from 2015 and all costs incurred by the EU in concluding and carrying out each operation will 
be borne by Ireland. 

It should be noted that such decision will enhance the sustainability and improve the liquidity 
outlook of the programme. This results in improved borrowing conditions for the sovereign as 
well  as  spill-over  effects  to  the  private  sector.  These  effects  are  beneficial  for  both  creditor 
and debtor countries and therefore contributes to the stability of the euro area. 

Taking  into  account  the  above  explanations,  the  Commission  considers  that  the  changes 
consisting in the extension of the average maturity of the EFSM loan to Ireland are beneficial 
to securing the programme's objectives.  

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2013/0167 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

amending Implementing Decision 2011/77/EU on granting Union financial assistance to Ireland 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having  regard  to  Council  Regulation  (EU)  No  407/2010  of  11  May  2010  establishing  a  European 
financial stabilisation mechanism1, and in particular Article 3(2) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

Upon  a  request  by  Ireland,  the  Council  granted  financial  assistance  to  Ireland  (Implementing 
Decision  2011/77/EU2)  in  support  of  a  strong  economic  and  reform  programme  aiming  at 
restoring  confidence,  enabling  the  return  of  the  economy  to  sustainable  growth,  and 
safeguarding financial stability in Ireland, the euro area and the Union. 

The Commission completed the  ninth review of the Irish economic reform programme on 22 
April 2013. 

An extension of the maximum average maturity of the EU loan would be beneficial as it would 
support  Ireland’s  efforts  to  regain  full  market  access  and  successfully  exit  its  programme.  In 
order to take full benefit from the extension of the maximum average maturity of the EU loan, 
the Commission should be authorised to extend the maturity of instalments and tranches. 

(4) 

In light of these developments, Implementing Decision 2011/77/EU should be amended, 

HAS ADOPTED THIS DECISION:  

Article 1 

Article 1 of Implementing Decision 2011/77/EU is amended as follows:  

(1) Paragraph 1 is replaced by the following:  

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2 

OJ L 118, 12.5.2010, p. 1. 
OJ L 30, 4.2.2011, p. 34. 

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‘1. 
The Union shall make available to Ireland a loan amounting to a maximum of EUR 22.5 billion, 
with a maximum average maturity of 19.5 years. The maturity of individual tranches of the loan facility 
may be up to 30 years.’ 

(2) The following paragraph is added: 

At  the  request  of  Ireland,  the  Commission  may  extend  the  maturity  of  an  instalment  or  a 
‘9. 
tranche,  provided  that  the  maximum  average  maturity  as  set  out  in  paragraph  1  is  respected.  The 
Commission  may  refinance  all  or  part  of  its  borrowing  for  that  purpose.  Any  amounts  borrowed  in 
advance  shall  be  kept  on  an  account  with  the  ECB  that  the  Commission  has  opened  for  the 
administration of the financial assistance.’ 

This Decision is addressed to Ireland.  

Article 2 

Article 3 

This Decision shall be published in the Official Journal of the European Union.  

Done at Brussels,  

For the Council 
The President 

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