European Financial Stability Mechanism

(redirected from Efsm)
Also found in: Acronyms.

European Financial Stability Mechanism

A lending facility established by the European Union to bail out member states in danger of default and other fiscal stress. The EFSM is permitted to borrow up to 60 billion euros to finance its objectives. Its debt is collateralized by the EU budget. It began operations in 2011 with a bond issue to assist the Irish government.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
"We have had great success with eFSM and I feel it is the future of how we will do business," he said.
The proposal to use the EFSM for the bridge loan is controversial because Britain and the Czech Republic are strongly opposed to it.
An extension of the EFSM loans will therefore have to be approved by all EU countries.
Britain, which refused to allow the EFSM fund to be used for Greece's bailout in the past, restated its objections on Tuesday, calling the option a complete "non-starter".
The EFSM issues bonds backed by all 28 European Union members and was used to help Ireland and Portugal.
The EU had discussed the possibility of using the funds of the European Financial Stability Mechanism (EFSM) to provide Greece with about 8.6 billion euro, during their meeting in Brussels on Wednesday.
It was preceded by the European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism (EFSM).
As a permanent mechanism, the ESM will take over the tasks currently fulfilled by the European Financial Stability Facility and the European Financial Stabilisation Mechanism (EFSM).
Dombrovskis said the best possible avenue for this bridge financing is by the European Financial Stability Mechanism (EFSM), the emergency EU fund.
The ESM is planned as an institution to manage a permanent rescue funding programme following the temporary European Financial Stability Facility (EFSF) and European Financial Stabilisation Mechanism (EFSM) in the 17-member Eurozone.