How the Crisis Strengthened Europe: The ESM, a Crucial Innovation to Make the Euro More Robust
About the speaker:
Kalin Anev Janse is Secretary General of the European Stability Mechanism (ESM). He is responsible for funding and investor relations, asset/liability management and lending, corporate governance and shareholder relations, and technology and operations.
Kalin previously worked for the European Investment Bank. Prior to this, he worked as a corporate finance advisor for McKinsey & Company. He has also worked in investment banking at JPMorgan. He studied MSc. Business Administration in Strategic Management at the Rotterdam School of Management and Wharton School University of Pennsylvania.
About the European Stability Mechanism:
The European Stability Mechanism was founded in October 2012, taking over from its temporary sister organization the European Financial Stability Facility (EFSF), as part of Europe’s response to the sovereign debt crisis. The ESM’s mandate is to provide financing to countries of the euro zone that have lost access to the capital markets in return for conditionality.
Unlike the IMF, the ESM raises its own funding through the issuance of bonds in the capital markets. Using a diversified funding strategy, all proceeds are pooled and then disbursed to beneficiary Member States. Due to its mandate, the ESM seeks to raise funds in all market conditions and plans to launch a strategic dollar issuance program to broaden its investor base and achieve funding cost advantages. The ESM USD inaugural transaction will take place in the fourth quarter of 2017, subject to market conditions.
The EFSF and ESM have so far disbursed €254.5 billion to five countries (Ireland, Portugal, Greece, Spain, and Cyprus). This is three times more than the IMF over the same time period. Due to the ESM’s low-cost funding and reform conditionality, ‘success stories’ have emerged from the crisis; Greece is the only country still under a macro-economic assistance program.
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