CELEX: 52013PC0320
Language: en
Date: 2013-05-24
Title: Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision 2011/77/EU on granting Union financial assistance to Ireland

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		52013PC0320
		
			Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision 2011/77/EU on granting Union financial assistance to Ireland /* COM/2013/0320 final - 2013/0167 (NLE) */
			
				
		
		
			
			   	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. 
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
mechanism[1],
and in particular Article 3(2) thereof,
Having regard to the proposal from the
European Commission,
Whereas:
(1)       Upon
a request by Ireland, the Council granted financial assistance to Ireland (Implementing Decision 2011/77/EU[2])
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.
(2)       The Commission completed
the  ninth review of the Irish economic reform programme on 22 April 2013.
(3)       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: 
‘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:
‘9.        At the request of Ireland, the
Commission may extend the maturity of an instalment or a 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.’
Article 2
This Decision
is addressed to Ireland. 
Article 3
This Decision
shall be published in the Official Journal of the European Union. 
Done at Brussels, 
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 118, 12.5.2010, p. 1.
[2]               OJ L 30, 4.2.2011, p. 34.