The “green light” for the merger of the Financial Stability Fund (FSF) with the Hellenic Holdings and Property Company (EESP) was given by the ESM and the EFSF.

As announced, the Boards of Directors of the European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF) have today given their consent to the merger of the Financial Stability Fund (HFSF) with the Hellenic Holdings and Property Company (HEP).

This followed the Greek government’s request of 5 November 2024, seeking the approval of the merger by the ESM and the EFSF, as the prior consent of both institutions is required for any transfer or assignment of the HFSF’s rights or obligations under of the relevant loan agreements.

The Greek government’s merger plan also includes the merger of the Public Private Property Development Fund (TAIPED) with the EESPwhich does not require the consent of the ESM or the EFSF.

Before the merger takes effect, in accordance with Greek law, EMS, EFSF and Hellenic Holdings and Property Company (HEP) will sign an implementation agreement. This will clarify the operational aspect of the transfer of the rights and obligations of the EFSF under the loan agreements to the HCAP and preserve the creditor status of the ESM and the EFSF so that it is not affected by the resulting succession.

EESP is a Greek state holding company, which was founded in 2016 and operates independently for the public interest. It manages Greek public assets, enhancing their value and contributing to the country’s economic development and debt reduction.

According to ERT, the repayment will create some savings for the Greek budget and will also strengthen its liquidity management.

“Greece continues to take important steps in its economic development. It is one of the fastest growing economies in the EU and has returned to investment grade. The planned early repayment of GLF loans is another positive signal for financial markets and demonstrates the improvement of Greece’s fiscal position. The repayment will generate some savings for the Greek budget and also strengthen its liquidity management. These are remarkable developments for the ESM and EFSF, which hold around 54% of Greece’s public debt. Our interests are aligned and we will continue to support the Greek authorities in their efforts to strengthen long-term growth and debt sustainability,” said ESM CEO and EFSF CEO Pierre Gramegna.