natgillin/translations-raw huggingface dataset:
In addition, the ESM will also dispose of a combination of committed callable capital and of guarantees from euro area Member States to a total amount of € 620 billion
In addition, the ESM will also dispose of a combination of committed callable capital and of guarantees from euro area Member States to a total amount of € 620 billion
The contribution key of each Member State in the total subscribed capital of the ESM will be based on the paid-in capital key of the ECB as annexed.
The contribution key of each Member State in the total subscribed capital of the ESM will be based on the paid-in capital key of the ECB as annexed.
By ratifying the Treaty establishing the ESM, Member States legally commit to provide their contribution to the total subscribed capital.
By ratifying the Treaty establishing the ESM, Member States legally commit to provide their contribution to the total subscribed capital.
The Board of Governors will decide by mutual agreement when adapting the amount of total subscribed capital or when calling capital, except in the specific cases described below.
The Board of Governors will decide by mutual agreement when adapting the amount of total subscribed capital or when calling capital, except in the specific cases described below.
First, the Board of Directors can decide, by simple majority, to restore -by calling in capital- the level of paid-in capital in the event that the amount of paid-in capital is reduced by the absorption of losses The vote of the Member State whose default is at the origin of the loss to be covered is suspended for this decision.
First, the Board of Directors can decide, by simple majority, to restore -by calling in capital- the level of paid-in capital in the event that the amount of paid-in capital is reduced by the absorption of losses The vote of the Member State whose default is at the origin of the loss to be covered is suspended for this decision.
Second, an on-demand guarantee procedure will be put in place that allows calling in capital automatically from the shareholders of the ESM if needed to avoid a payment shortfall to the creditors of the ESM.
Second, an on-demand guarantee procedure will be put in place that allows calling in capital automatically from the shareholders of the ESM if needed to avoid a payment shortfall to the creditors of the ESM.
The liability of each shareholder will in all circumstances be limited to its share in the subscribed capital.
The liability of each shareholder will in all circumstances be limited to its share in the subscribed capital.
Any contribution to subscribed capital by a Member State As a consequence of joining the euro area, a Member State shall become a member of the ESM with full rights and obligations.
Any contribution to subscribed capital by a Member State As a consequence of joining the euro area, a Member State shall become a member of the ESM with full rights and obligations.
joining the ESM after July 2013 will be made according to the same terms applied for the original contributions.
joining the ESM after July 2013 will be made according to the same terms applied for the original contributions.
The practical implications for the overall amount of subscribed capital and the distribution of capital among the Member States will be decided by the Board of Governors by mutual agreement.
The practical implications for the overall amount of subscribed capital and the distribution of capital among the Member States will be decided by the Board of Governors by mutual agreement.
As long as the ESM has not been activated and provided that the effective lending capacity is not less than 500 billion, the proceeds from the investment of the ESM paid-in capital will be returned to the Member States, after deductions for operational costs.
As long as the ESM has not been activated and provided that the effective lending capacity is not less than 500 billion, the proceeds from the investment of the ESM paid-in capital will be returned to the Member States, after deductions for operational costs.
Following the first activation of the ESM, the proceeds from the investment of ESM capital and financial assistance activity will be retained within the ESM.
Following the first activation of the ESM, the proceeds from the investment of ESM capital and financial assistance activity will be retained within the ESM.
However, in the event that paid-in capital exceeds the level required to maintain the lending capacity of the ESM, the Board of Directors can decide, by simple majority to distribute a dividend to the euro-area Member States based on the contribution key.
However, in the event that paid-in capital exceeds the level required to maintain the lending capacity of the ESM, the Board of Directors can decide, by simple majority to distribute a dividend to the euro-area Member States based on the contribution key.
The ESM will provide financial assistance subject to strict conditionality under a macro-economic adjustment programme, commensurate with the severity of the imbalances of the Member State.
The ESM will provide financial assistance subject to strict conditionality under a macro-economic adjustment programme, commensurate with the severity of the imbalances of the Member State.
It will be provided through loans.
It will be provided through loans.
However, it may intervene, as an exception, in debt primary markets on the basis of a macro-economic adjustment programme with strict conditionality and if agreed by the Board of Governors by mutual agreement.
However, it may intervene, as an exception, in debt primary markets on the basis of a macro-economic adjustment programme with strict conditionality and if agreed by the Board of Governors by mutual agreement.
§ ESM stability support (ESS)
§ ESM stability support (ESS)
The ESM can grant short-term or medium term stability support to a euro-area Member State, which is experiencing severe financing problems.
The ESM can grant short-term or medium term stability support to a euro-area Member State, which is experiencing severe financing problems.
Access to an ESS will imply a macroeconomic adjustment programme with adequate policy conditionality commensurate with the severity of the underlying imbalances in the beneficiary Member State.
Access to an ESS will imply a macroeconomic adjustment programme with adequate policy conditionality commensurate with the severity of the underlying imbalances in the beneficiary Member State.
The length of the programme and maturity of the loans will depend on the nature of the imbalances and the prospects of the beneficiary Member States regaining access to financial markets within the time that ESM resources are available.
The length of the programme and maturity of the loans will depend on the nature of the imbalances and the prospects of the beneficiary Member States regaining access to financial markets within the time that ESM resources are available.
Primary market support facility
Primary market support facility
The ESM can purchase the bonds of a Member State, which is experiencing severe financing problems, on the primary market, with the objective of maximizing the cost efficiency of the support.
The ESM can purchase the bonds of a Member State, which is experiencing severe financing problems, on the primary market, with the objective of maximizing the cost efficiency of the support.
Conditions and modalities under which bond purchasing would be conducted will be specified in the Decision on the terms and conditions of financial assistance.
Conditions and modalities under which bond purchasing would be conducted will be specified in the Decision on the terms and conditions of financial assistance.
The Board of Governors may review the instruments at the ESM's disposal and may decide to make changes to the menu of instruments.
The Board of Governors may review the instruments at the ESM's disposal and may decide to make changes to the menu of instruments.
IMF involvement
IMF involvement
The ESM will cooperate very closely with the IMF in providing financial assistance It is however understood that any IMF involvement will be consistent with its mandate under the Articles of Agreement and by applicable decision and policies of the IMF Board.
The ESM will cooperate very closely with the IMF in providing financial assistance It is however understood that any IMF involvement will be consistent with its mandate under the Articles of Agreement and by applicable decision and policies of the IMF Board.
In all circumstances, active participation of the IMF will be sought, both on the technical and the financial level.
In all circumstances, active participation of the IMF will be sought, both on the technical and the financial level.
The debt sustainability analysis will be jointly conducted by the Commission and the IMF, in liaison with the ECB.
The debt sustainability analysis will be jointly conducted by the Commission and the IMF, in liaison with the ECB.
The policy conditions attached to a joint ESM/IMF assistance will be negotiated jointly by the Commission and the IMF, in liaison with the ECB.
The policy conditions attached to a joint ESM/IMF assistance will be negotiated jointly by the Commission and the IMF, in liaison with the ECB.
Activation of financial assistance, programme monitoring and follow-up
Activation of financial assistance, programme monitoring and follow-up
Financial assistance from the ESM will in all cases be activated on a request from a Member State to the other Members States of the euro area.
Financial assistance from the ESM will in all cases be activated on a request from a Member State to the other Members States of the euro area.
The Eurogroup will inform the Council that a request for activation of support has been made.
The Eurogroup will inform the Council that a request for activation of support has been made.
On receipt of such a request, the Board of Governors will ask the Commission to assess, in liaison with the ECB, the existence of a risk to the financial stability of the euro area as a whole and to undertake a rigorous analysis of the sustainability of the public debt of the Member State concerned, together with the IMF and in liaison with the ECB.
On receipt of such a request, the Board of Governors will ask the Commission to assess, in liaison with the ECB, the existence of a risk to the financial stability of the euro area as a whole and to undertake a rigorous analysis of the sustainability of the public debt of the Member State concerned, together with the IMF and in liaison with the ECB.
The subsequent steps in the activation of ESM financial assistance will be as follows:
The subsequent steps in the activation of ESM financial assistance will be as follows:
§ If an ESS is requested, the Commission, together with the IMF and in liaison with the ECB, will assess the actual financing needs of the beneficiary Member State and the nature of the required private sector involvement, which should be consistent with IMF practices.
§ If an ESS is requested, the Commission, together with the IMF and in liaison with the ECB, will assess the actual financing needs of the beneficiary Member State and the nature of the required private sector involvement, which should be consistent with IMF practices.
§ On the basis of this assessment, the Board of Governors will mandate the Commission to negotiate, together with the IMF and in liaison with the ECB, a macro-economic adjustment programme with the Member State concerned, detailed in a MoU.
§ On the basis of this assessment, the Board of Governors will mandate the Commission to negotiate, together with the IMF and in liaison with the ECB, a macro-economic adjustment programme with the Member State concerned, detailed in a MoU.
§ The Commission will propose to the Council a decision endorsing the macro-economic adjustment programme.
§ The Commission will propose to the Council a decision endorsing the macro-economic adjustment programme.
The Board of Governors will decide on the granting of financial assistance and the terms and conditions under which assistance is provided.
The Board of Governors will decide on the granting of financial assistance and the terms and conditions under which assistance is provided.
The Board of Directors will then approve the financial assistance agreement which would contain the technical aspects of the financial assistance to be provided.
The Board of Directors will then approve the financial assistance agreement which would contain the technical aspects of the financial assistance to be provided.
§ The Commission, together with the IMF and in liaison with the ECB, will be responsible for monitoring compliance with the policy conditionality required by a macroeconomic adjustment programme.
§ The Commission, together with the IMF and in liaison with the ECB, will be responsible for monitoring compliance with the policy conditionality required by a macroeconomic adjustment programme.
§ After discussion in the Board of Governors, the Council can decide, on a proposal by the Commission, to implement post-programme surveillance, which can be maintained for as long as a specified amount of the financial assistance has not been repaid.
§ After discussion in the Board of Governors, the Council can decide, on a proposal by the Commission, to implement post-programme surveillance, which can be maintained for as long as a specified amount of the financial assistance has not been repaid.
Consistency with the EU multilateral surveillance framework
Consistency with the EU multilateral surveillance framework
Approval by the EU Member States will be sought to allow the euro-area Member States to task the Commission, together with the IMF and in liaison with the ECB, the analysis of the debt sustainability of the Member State requesting financial support, the preparation of the adjustment programme accompanying the financial assistance, as well as with the monitoring of its implementation.
Approval by the EU Member States will be sought to allow the euro-area Member States to task the Commission, together with the IMF and in liaison with the ECB, the analysis of the debt sustainability of the Member State requesting financial support, the preparation of the adjustment programme accompanying the financial assistance, as well as with the monitoring of its implementation.
While the Board of Governors has the autonomy to decide on the existence and modalities of financial assistance under an intergovernmental framework, the policy conditionality established under an enhanced surveillance or a macroeconomic adjustment programme should be consistent with the EU surveillance framework and must guarantee the respect of EU procedures.
While the Board of Governors has the autonomy to decide on the existence and modalities of financial assistance under an intergovernmental framework, the policy conditionality established under an enhanced surveillance or a macroeconomic adjustment programme should be consistent with the EU surveillance framework and must guarantee the respect of EU procedures.
The Board of Governors will decide on the pricing structure for financial assistance to a beneficiary Member State.
The Board of Governors will decide on the pricing structure for financial assistance to a beneficiary Member State.
The ESM will be able to lend at a fixed or variable rate.
The ESM will be able to lend at a fixed or variable rate.
The pricing of the ESM will be in line with IMF pricing principles and, while remaining above the funding costs of ESM, will include an adequate mark up for risks.
The pricing of the ESM will be in line with IMF pricing principles and, while remaining above the funding costs of ESM, will include an adequate mark up for risks.
The following pricing structure will apply to ESM loans:
The following pricing structure will apply to ESM loans:
ESM funding cost
ESM funding cost
A charge of 200 bps applied on the entire loans
A charge of 200 bps applied on the entire loans
A surcharge of 100 bps for loan amounts outstanding after 3 years
A surcharge of 100 bps for loan amounts outstanding after 3 years
For fixed rate loans with maturities above 3 years, the margin will be a weighted average of the charge of 200 bps for the first 3 years and 200 bps plus 100 bps for the following years.
For fixed rate loans with maturities above 3 years, the margin will be a weighted average of the charge of 200 bps for the first 3 years and 200 bps plus 100 bps for the following years.
The pricing structure will be defined in the pricing policy of the ESM, which will be reviewed periodically.
The pricing structure will be defined in the pricing policy of the ESM, which will be reviewed periodically.
Private sector involvement
Private sector involvement
Modalities for involving the private sector
Modalities for involving the private sector
An adequate and proportionate form of private-sector involvement will be expected in all cases where financial assistance is received by the beneficiary State.
An adequate and proportionate form of private-sector involvement will be expected in all cases where financial assistance is received by the beneficiary State.
The nature and extent of this involvement will be determined on a case-by-case basis and will depend on the outcome of a debt sustainability analysis, in line with IMF practice In line with the IMF, debt is considered sustainable when a borrower is expected to be able to continue servicing its debts without an unrealistically large correction to its income and expenditure.
The nature and extent of this involvement will be determined on a case-by-case basis and will depend on the outcome of a debt sustainability analysis, in line with IMF practice In line with the IMF, debt is considered sustainable when a borrower is expected to be able to continue servicing its debts without an unrealistically large correction to its income and expenditure.
This judgement determines the availability and the appropriate scale of financing.
This judgement determines the availability and the appropriate scale of financing.
, and on potential implications for euro-area financial stability.
, and on potential implications for euro-area financial stability.
If, on the basis of a sustainability analysis, it is concluded that a macro-economic adjustment programme can realistically restore the public debt to a sustainable path
If, on the basis of a sustainability analysis, it is concluded that a macro-economic adjustment programme can realistically restore the public debt to a sustainable path
, the beneficiary Member State will take initiatives aimed at encouraging the main private investors to maintain their exposures (e.g. a „Vienna Initiative“ approach).
, the beneficiary Member State will take initiatives aimed at encouraging the main private investors to maintain their exposures (e.g. a ‘Vienna Initiative’ approach).
The Commission, the IMF, the ECB and the EBA will be closely involved in monitoring the implementation of such initiatives.
The Commission, the IMF, the ECB and the EBA will be closely involved in monitoring the implementation of such initiatives.
If, on the basis of a sustainability analysis, it is concluded that a macro-economic programme cannot realistically restore the public debt to a sustainable path,
If, on the basis of a sustainability analysis, it is concluded that a macro-economic programme cannot realistically restore the public debt to a sustainable path,
the beneficiary Member State will be required to engage in active negotiations in good faith with its creditors to secure their direct involvement in restoring debt sustainability.
the beneficiary Member State will be required to engage in active negotiations in good faith with its creditors to secure their direct involvement in restoring debt sustainability.
The granting of the financial assistance will be contingent on the Member State having a credible plan and demonstrating sufficient commitment to ensure adequate and proportionate private sector involvement.
The granting of the financial assistance will be contingent on the Member State having a credible plan and demonstrating sufficient commitment to ensure adequate and proportionate private sector involvement.
Progress in the implementation of the plan will be monitored under the programme and will be taken into account in the decision on disbursements.
Progress in the implementation of the plan will be monitored under the programme and will be taken into account in the decision on disbursements.
In negotiating with creditors, the beneficiary Member State will adhere to the following principles:
In negotiating with creditors, the beneficiary Member State will adhere to the following principles:
the Member State will seek solutions proportionate to its debt sustainability problem.
the Member State will seek solutions proportionate to its debt sustainability problem.
: the Member State concerned will engage in an open dialogue with creditors and share relevant information with them on a timely basis.
: the Member State concerned will engage in an open dialogue with creditors and share relevant information with them on a timely basis.
the Member State will consult creditors on the design of any rescheduling or restructuring of public debt with a view to reaching negotiated solutions.
the Member State will consult creditors on the design of any rescheduling or restructuring of public debt with a view to reaching negotiated solutions.
Measures reducing the net present value of the debt will be considered only when other options are unlikely to deliver the expected results.
Measures reducing the net present value of the debt will be considered only when other options are unlikely to deliver the expected results.
Cross-border co-ordination:
Cross-border co-ordination:
the risk of contagion and potential spill over effects on other Member States and third countries will be duly taken into account in the design of measures to involve the private sector.
the risk of contagion and potential spill over effects on other Member States and third countries will be duly taken into account in the design of measures to involve the private sector.
The measures taken will be accompanied with a proper communication by the Member State concerned aimed at preserving the financial stability of the Euro Area as a whole.
The measures taken will be accompanied with a proper communication by the Member State concerned aimed at preserving the financial stability of the Euro Area as a whole.
Collective Action Clauses
Collective Action Clauses
Collective Action Clauses (CACs) will be included in all new euro area government securities, with maturity above one year, from July 2013.
Collective Action Clauses (CACs) will be included in all new euro area government securities, with maturity above one year, from July 2013.
The objective of such CACs will be to facilitate agreement between the sovereign and its private-sector creditors in the context of private sector involvement.
The objective of such CACs will be to facilitate agreement between the sovereign and its private-sector creditors in the context of private sector involvement.
The inclusion of CACs in a bond will not imply a higher probability of default or of debt restructuring relating to that bond.
The inclusion of CACs in a bond will not imply a higher probability of default or of debt restructuring relating to that bond.
Accordingly, the creditor status of sovereign debt will not be affected by the inclusion of CACs.
Accordingly, the creditor status of sovereign debt will not be affected by the inclusion of CACs.
The main features of the CACs will be consistent with those commonly used in the US and the UK markets since the G10 report on CACs.
The main features of the CACs will be consistent with those commonly used in the US and the UK markets since the G10 report on CACs.
CACs will be introduced in a way which preserves a level playing field among euro area Member States.
CACs will be introduced in a way which preserves a level playing field among euro area Member States.
This implies the use of
This implies the use of
identical and standardized clauses
identical and standardized clauses