Brussels, 21/12/2010 (Agence Europe) - On Tuesday 21 December 2010, the European Commission announced the final timeline for raising funding to provide the Irish financial aid package decided upon by the ECOFIN Council at the end of last month (see EUROPE 10266). The timeline covers the €22.5bn from the “EU instrument”, the European Financial Stability Mechanism (EFSM) and €17.7bn from the “intergovernmental instrument”, the European Financial Stability Fund (EFSF). The timing has been decided upon in close cooperation with the EU and the EFSF to ensure smooth market operations throughout the duration of the aid package, explains the Commission in a press release.
In 2011, the EFSM will raise up to €17.6bn in four or five sections, each of some €3bn to €5bn. The first amount will be raised early next month and two more in the first half of 2011. The EFSM will provide up to €17.6bn in 2011 and up to €4.9bn in 2012. The offices of the European Commission in Luxembourg will deal with the practicalities. The EFSF will raise up to €16.5bn next year and up to €10bn in 2012. The money to be raised in 2011 will be in three batches, the first planned for the end of January and the second during the first half of the year, each of them raising between €3bn and €5bn. The practicalities will be dealt with by the German debt management bureau for the EFSF (also located in Luxembourg). The EFSM must raise funds in euro, but the EFSF can use other currencies if it desires. The money borrowed by the EFSM and EFSF will mature in 5, 7 or 10 years. The three big credit rating agencies have given the EFSM and EFSF the top rating, triple A. Publication of the timeline for the Irish aid package comes on the same day as Moody's announced that it may downgrade Portugal's rating. (M.B./transl.fl)