Econostrum | Economic News in the Mediterranean
     

14 bn extra funding to help European countries in their recovery


Written by Eric Apim on Wednesday, January 27th 2021 à 10:09 | Read 259 times



By the end of December 2020, the SURE instrument had enabled €90.3 billion to be paid out to 18 countries (infographics: European Commission).
By the end of December 2020, the SURE instrument had enabled €90.3 billion to be paid out to 18 countries (infographics: European Commission).
EU. On Tuesday 27 January 2021, the European Commission issued €14bn worth of social bonds under the SURE (Support to mitigate unemployment risks in emergency) instrument developed by the European Union to help eighteen Member States protect jobs and employees in the face of the consequences of the health crisis.

This is the fourth issue of the SURE programme, the two previous issues of which were launched at the end of October 2020 and in November 2020. "Today's SURE bond issue is a continuation of a remarkable success story. This issue has shown once again the great interest of the market for EU bonds. This is excellent news for the EU as an issuer. It gives us confidence that we will successfully complete the SURE issue and launch the NextGenerationEU borrowing and lending programme", commented Johannes Hahn, European Commissioner for Budget and Human Resources.

As a result of these successive rounds of funding, the SURE programme has already been able to disburse a total of €39.5 billion in loans backed by 15 Member States*, mostly from the South. They are to be used to help them "cover the costs directly related to the financing of national short-time working programmes and similar measures in response to the pandemic", as the European Commission points out in a press release.
 

90.3 bn already paid out to Member States

The €14 billion concerned in 2021 is divided into two bonds. A €10 billion bond to be repaid in June 2028 and a €4 billion bond to be repaid in November 2050. The first, with a seven-year maturity, was raised at a negative rate of -0.497% and the second, with a 30-year maturity, at 0.134%.

The European Commission plans to raise a further €35bn in the course of 2021. This will make it possible to reach the €90.3 billion in financial support approved by the European Council. However, this amount should eventually exceed €100 billion. At the same time, another loan taken out as part of the "NextGenerationEU" recovery plan will also be launched in 2021 for an amount of €750 billion. This instrument is dedicated to a greener, more digital and more resilient Europe.

*Italy, Spain, Poland, Greece, Croatia, Lithuania, Cyprus, Slovenia, Malta, Latvia, Belgium, Romania, Hungary, Portugal and Slovakia.
 



In the same section
< >

   Partners









About Econostrum.info Econostrum.info is an independent media that deals with the daily economic news of the countries bordering the Mediterranean. Economic cooperation, business news by sector (Industry, Services, Transport, Environment, Society/Institutions), thematic files, airport news, airlines and shipping companies (new destinations)... are treated and analysed by a team of journalists present in the Mediterranean basin. Subscribe to Econostrum.info To be the first to know, with unlimited access to all articles. To receive the weekly newsletters and special newsletters sent as soon as our files are published. Automatically renewable subscription, but the reader keeps control of it or yearly subscription. For individuals or professionals...