European Stability Mechanism,update

 

ESM BOARD OF GOVERNORS APPROVES 2023 ANNUAL REPORT 20 June 2024 ESM Press Release no. 8 The Board of Governors of the European Stability Mechanism (ESM) held its twelfth Annual Meeting today in Luxembourg. It approved the 2023 ESM Annual Report, including the ESM’s financial statements, and discussed the main developments and key activities of the ESM over the past year.  The ESM recorded a net profit of €320.5 million last year, compared to a net loss of €60.2 million in 2022. This major improvement has mainly been driven by the positive result on the investment of the ESM’s paid-in capital. The Board of Governors also discussed the final report on the ESM’s maximum lending volume, adequacy of the authorised capital stock and financial assistance instruments. “The ESM has proven over the years its value and importance as the euro area’s crisis prevention and resolution mechanism. Today, the Board of Governors discussed the comprehensive review of the maximum lending volume, adequacy of the authorised capital stock, and financial assistance instruments. It is customary for international organisations to review their toolkits to ensure instruments remain appropriate with regard to potential risks to financial stability. We had an excellent exchange of views. Based on the feedback, the ESM staff will carry out further technical work on the main findings of the review,” said Paschal Donohoe, Chairperson of the ESM Board of Governors. “The Board of Governors approved the ESM’s 2023 financial results, which were excellent thanks to the new environment of higher interest rates. It also reviewed the findings of a report by ESM staff, concerning the wide range and adequacy of our lending toolkit. The discussion was rich, with a particular emphasis on how an effective ESM, that is fit for purpose, can best prevent crises. This is vital for the ESM to continue delivering on its mandate of safeguarding financial stability in the euro area,” said ESM Managing Director Pierre Gramegna. Finally, the Board of Governors appointed Märt Loite and Helmut Berger as members of the Board of Auditors.   2023 ESM Annual Report (web version) 2023 ESM Annual Report (pdf)

Media Enquiries       Cédric Crelo Head of Communications and Chief Spokesperson Phone: +352 260 962 205 c.crelo@esm.europa.eu Anabela Reis Deputy Head of Communications and Deputy Chief Spokesperson Phone: +352 260 962 551 a.reis@esm.europa.eu     George Matlock Senior Financial Spokesperson Phone: +352 260 962 232 g.matlock@esm.europa.eu Juliana Dahl Principal Speechwriter and Principal Spokesperson Phone: +352 260 962 654 j.dahl@esm.europa.eu       About the ESM     The European Stability Mechanism (ESM) has the mandate to preserve financial stability in the euro area by providing financial assistance to Member States with severe financing problems. It is a permanent inter-governmental institution, operating since October 2012. The shareholders of the ESM are the 20 euro area Member States. All financial assistance to Member States is linked to appropriate conditionality. The ESM finances its assistance by issuing bonds and other debt instruments. It has a total subscribed capital of approximately €700 billion, which comprises €80 billion in paid-in capital and €624 billion in committed callable capital. The ESM’s maximum lending capacity is €500 billion