EUROPEAN FINANCIAL STABILISATION MECHANISM

Temporary fund which provisions financial assistance to those Member States of the Eurozone who are facing crises due to extraordinary circumstances out of the state control. The mechanism was established by the regulation (EU) 407/2010, stayng within the European Union and it is going to be absorbed by the EMS. The assistance can take the form of a loan or a credit line granted to Member States. To benefit from the mechanism, the state shall submit an economic and financial adjustment programme. The fund is compatible with the facility providing medium-term financial assistance for balances of payments. The total maximum amount is fixed at 60 billions Euro.

Source: europa.eu/legislation