Regulatory Alerts2012-12-10
Financial Assistance Facility Agreement between the European Stability Mechanism and the Kingdom of Spain
The European Stability Mechanism (ESM), the Kingdom of Spain, the Bank of Spain, and the Orderly Bank Restructuring Fund (FROB) entered into a Financial Assistance Facility Agreement to assume the EFSF's commitment to provide up to EUR 100 billion for the recapitalization of Spanish financial institutions. This agreement transfers obligations from the European Financial Stability Facility (EFSF) to the ESM, subject to Spain's compliance with the Memorandum of Understanding and specific financial conditions. The document establishes the legal framework, definitions, and specific modifications to general and facility-specific conditions governing the disbursement and repayment of this financial support.
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