European Financial Stability Facility - EFSF

An organization created by the European Union to provide assistance to member states with unstable economies. The European Financial Stability Facility is a special purpose vehicle (SPV) managed by the European Investment Bank, a lending institution. The fund raises money by issuing debt, and distributes the funds to eurozone countries whose lending institutions need to be recapitalized, who need help managing their sovereign debt or who need financial stabilization.

European countries have several options outside of the open market to seek financial help. Other than the European Financial Stability Facility, European countries can seek money from European Financial Stabilization Mechanism (EFSM), which is guaranteed by the European Union's budget, or the International Monetary Fund (IMF). These funding mechanisms are supported by the EU because, while not all countries have debt problems, the failure of one European economy can have a widespread effect on the health of other economies. Starting in 2013, the EFSF will be replaced by the ESM, or the European Stability Mechanism.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Office of Financial Stability — The Office of Financial Stability is a new office within the Office of Domestic Finance of the United States Treasury created by the Emergency Economic Stabilization Act of 2008 to operate the Troubled Assets Relief Program.[1] OFS is headed by… …   Wikipedia

  • European System of Central Banks — European Union This article is part of the series: Politics and government of the European Union …   Wikipedia

  • European Commissioner for Economic and Monetary Affairs and the Euro — Incumbent Olli Rehn since 9 February 2010 …   Wikipedia

  • European Council — Not to be confused with the Council of the European Union or the Council of Europe. European Council Bulgarian …   Wikipedia

  • Member state of the European Union — Member states of the European Union …   Wikipedia

  • Late-2000s financial crisis — The TED spread (in red) increased significantly during the financial crisis, reflecting an increase in perceived credit risk …   Wikipedia

  • Commercial Paper Funding Facility — (CPFF) was a system created by the United States Federal Reserve Board during the Global financial crisis of 2008 to improve liquidity in the short term funding markets. The CPFF was created on October 27, 2008 and funded a special purpose… …   Wikipedia

  • United States Consumer Financial Protection Bureau — U.S. Consumer Financial Protection Bureau CFPB Agency overview Formed July 21, 2011 Jurisdiction Federal government of the United States Headquarters Washington, D.C. Agency executive …   Wikipedia

  • No One Would Listen: A True Financial Thriller —   …   Wikipedia

  • Nuclear energy in the European Union — Infobox Geopolitical organisation native name = European Union Countries with Nuclear Energy The nuclear energy in the European Union accounts approximately 15% of total energy consumption. The energy policies of the European Union (EU) member… …   Wikipedia

  • United Nations Monetary and Financial Conference — Mount Washington Hotel The United Nations Monetary and Financial Conference, commonly known as the Bretton Woods conference, was a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.