European Stability Mechanism:ESM and Arab Monetary Fund renew Memorandum of Understanding

 

ESM and Arab Monetary Fund renew Memorandum of Understanding 24 April 2025 ESM Press Release no. 6 (Washington DC) -- The European Stability Mechanism (ESM) and the Arab Monetary Fund (AMF) signed today an updated Memorandum of Understanding (MoU) to strengthen their cooperation. This agreement establishes a framework aimed at supporting the mandate of both institutions, which is to enhance financial stability and economic resilience among their member states. Both the ESM and AMF act as Regional Financing Arrangements (RFAs), i.e. mechanisms or agreements through which groups of countries mutually pledge financial support to countries facing financial difficulties in their regions.  “This renewed MoU marks a significant deepening of our partnership with the Arab Monetary Fund. By further expanding our collaboration, we are committed to exchanging our knowledge to best ensure financial stability and foster economic resilience in our respective regions, by acting as lenders of last resort. Leveraging our combined expertise, we aim to create new synergies that will strengthen the Global Financial Safety Net at a time of heightened uncertainty,” said ESM Managing Director Pierre Gramegna. “The renewed Memorandum of Understanding with the European Stability Mechanism reflects our shared commitment to strengthening financial safety nets through institutional cooperation. This collaboration represents a strategic step toward supporting financial stability, exchanging technical expertise, and enhancing readiness in the face of economic challenges. As we move forward on this path, we reaffirm our joint commitment to building a more robust and resilient financial system that meets the aspirations of our member countries amid a rapidly evolving global economic landscape,” said H.E. Dr. Fahad M. Alturki, Director General Chairman of the Board of the AMF. The MoU lists five areas of cooperation: (i) conducting regular dialogues among RFAs and between the RFAs and the IMF; (ii) engaging in joint research activities; (iii) enhancing organisational capacity; (iv) facilitating knowledge sharing and staff exchanges; and (v) supporting information sharing and consultations. The MoU continues and expands upon the existing collaboration between the ESM and the AMF, which was formalised through a first MoU signed by the two institutions in March 2022. The current MoU, signed for the period of three years, supersedes the first MoU. Press release on ESM website

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     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 €708 billion, which comprises €81 billion in paid-in capital and €627 billion in committed callable capital. The ESM’s maximum lending capacity is €500 billion.