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Oct 23, 2011

EFSF Guarantees Per Country (Total And Per Capita)

The EFSF is the Euro Zone Bailout Fund. Established on May 9 2010 and located in Luxembourg (registered as a company from Luxembourg).

In the last few weeks all 17 Euro Zone Members have ratified the bigger Euro Bailout Fund. The EFSF can now lend out 440 billion euros. In July Euro Zone leaders have agreed to a few amendments to the EFSF. It will also be able to finance recapitalization of financial institutions to through loans to governments. It can also intervene in the secondary markets (buy bonds on the markets of countries losing confidence from the markets) on the basis on an ECB analysis to avoid contagion. Lately the question has been raised by many whether the current amount of the EFSF is enough. Certainly not if Italy and Spain need bailout money as well.

In this chart the updated committed guarantees per country are pictured on the upper side and the guarantees person on the lower side of the graph. As you can see Germany is the biggest contributor to the EFSF with 211 billion euros committed guarantees. Luxembourg has the highest committed guarantees per person.

Note: K=1000. So 100K = 100 billion euros.

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