Euro Bill Explained

Euro Bill is a simple online tool which displays Eurozone member country participation on the rescue of Euro.

After clicking on one of the Eurozone countries on the map a table is shown. User can choose from two different tabs – Guarantees, or Resources provided.

Guarantees tab shows guaranteed help, agreed by member states. This means for example the overall capacity of ESM or EFSF.

Resources provided tab shows resources, which were activated and actually disbursed (not only committed in agreement!). In case of ECB bond purchases both guarantees and resources provided are identical, since there is no official size limit of the bond purchasing programs.

After clicking on the triangle, the tool shows breakdown of seven euro-rescue precautions used during the crisis.

Bond purchases by ECB
European Central Bank engaged in purchasing sovereign bonds of member states in 2010 and 2011 in order to push down the interest rates. This was done within the now ended Securities Markets Programme (SMP), now replaced with OMT programme (which was not used as of June 2014). This does not include around 60 billion euro expenditures of the Covered Bond Purchasing Programme (CBPP) 1 and 2 which were used mainly to stabilize financial system without direct connection to a certain member states. The national sums are counted on the basis of capital subscription ratios for Eurozone member countries.

Bilateral loans to Greece
Known as Greek Loan Facility, it was agreed in 2010 as an immediate precaution to help suddenly stricken Greek public finance, the bilateral loans programme was agreed among majority of the Eurozone members (excluding Slovakia), IMF and Greece. The agreed loans tranches were ended after the EFSF help to Greece was agreed in 2012.

EFSF
European Financial Stability Facility is a special purpose vehicle financed by members of the Eurozone established in 2010. It provided help to Greece, Portugal and Ireland.

EFSM
The European Financial Stabilisation Mechanism (EFSM) is an emergency funding programme reliant upon funds raised on the financial markets and guaranteed by the European Commission using the budget of the European Union as collateral. With limited capacity of 60 billion euro, it was used as a part of the Irish and Portuguese bailouts. The national sums are counted on the basis of member states contributions to the EU budget.

IMF Guarantees for EFSF and EFSM
International Monetary Fund provided funds in cooperation with EFSF and EFSM. The national sums are counted on the basis of IMF member quotas.

IMF Share on the Greek loan
International Monetary Fund provided funds also in cooperation with the Greek Loan Facility. The national sums are counted on the basis of IMF member quotas.

ESM
The European Stability Mechanism (ESM) is an international organization located in Luxembourg which was established on 27 September 2012 as a permanent firewall for the Eurozone. As of June 2014, it provided help to Spain (banking system) and Cyprus.

The breakdown is provided both in national terms and per capita (in the given member state). Annual net earnings in the member state are provided for comparison.

Data sources & further reading

ECB – Weekly financial statements
ECB – Capital subscriptions
ECB – Minimum reserves and liquidity
Covered Bond Purchasing Programme
EFSF Factsheet
Financial and economic support package for Portugal
European Financial Stabilisation Mechanism (EFSM)
Budget 2011 in figures – Total ‘national contributions
IMF Members’ Quotas and Voting Power
The Greek Loan Facility
The Greek Loan Facility
IMF Financial Activities – Current Financial Arrangements
Preliminary EFSF funding programme
Department of Finance – EU Funding (Ireland)
EFSF Lending Operations
EFSF Factsheet 2012
European Stability Mechanism (ESM)
Overview of Irish debt
Techniícal and statistical comparison of EFSF and ESM