Brussels - Xinhua
The European Union will issue this week a 10-year bond for Protugal, under the context of the European Financial Stabilisation Mechanism (EFSM), the European Commission said Monday. According to the EC, the bond is part of EFSM package of funding for Portugal and Ireland, coordinated with European Financial Stability Facility (EFSF). According to the plan, the EU, through EFSM plans to launch a total of 7 to 10 billion euros (9.6-13.6 billion U.S. dollars) of bonds in 2 or 3 transactions and with maturities between 5 and 15 years. The first transaction by the EU/EFSM will be a benchmark bond with 10 years maturity due in September 2021. The bond is expected to be launched this week. The EFSF does not plan to launch long term bonds until the euro-area Member States have approved the enhanced EFSF, which is expected by mid-October. Further remaining funding requirement of EU/EFSM and EFSF in 2011 for loans to Ireland and Portugal is in total about 10 to 13 billion euro, out of which the EU/EFSM intends to do one benchmark transaction and the EFSF will fund the remainder. The total funding commitments by EFSM and EFSF to Portugal and Ireland remain unchanged for 2012-2013. Various borrowing operations by EU/EFSM and EFSF have already taken place until to date in order to cover previous loan disbursements to Ireland and Portugal for a total amount of 27 billion euro.