Medium-term financial assistance for Member States' balances of payment

PURPOSE: to raise the ceiling on medium‑term financial assistance available under the EU support mechanism for the balances of payments of non-euro area Member States in financial difficulties.

LEGISLATIVE ACT: Council Regulation (EC) No 1360/2008 amending Regulation (EC) No 332/2002 establishing a facility providing medium‑term financial assistance for Member States’ balances of payments.

CONTENT: the Council adopted a Regulation raising the ceiling on medium‑term financial assistance for the balances of payments of non-euro area Member States in financial difficulties.

The text amends Regulation No 332/2002/EC on which the facility is based, to increase the total amount of loans available from EUR 12 billion at present to EUR 25 billion. The support facility applies only to Member States whose currency is not the euro.

The number of Member States outside the euro area - 11 in 2009, compared to three when the facility was set up in 2002 - affects potential demand for medium‑term support. This facility was used on 4 November to grant Hungary a loan amounting to EUR 6.5 billion.

ENTRY INTO FORCE: 01/01/2009.