Dáil debates

Thursday, 24 June 2010

European Financial Stability Facility Bill: Second Stage

 

Article 9 outlines the procedures to be followed by the company if it becomes aware of any breaches of conditions by a borrower or the need for any amendments of a loan facility agreement. Article 10 deals with the company. inter-guarantor decisions, directors and governance. It provides that each shareholder, that is each euro-area member state, is entitled to be represented by a director, specifically its representative on the eurogroup working group which typically is the relevant economic and financial committee, EFC, member. Each director's voting weight will correspond to the number of shares held by his country. The article identifies what decisions guarantors must take on a unanimous basis. These include decisions on the granting of loan facility agreements, the disbursement of loans, various modifications of loan facility agreements, stepping-out guarantors, significant changes to the credit enhancement structure and the funding strategy of each EFSF programme or any increase in the aggregate amount of guarantees that might be issued under the Framework Agreement. Corporate matters of the company that require unanimity include the call-up of capital, the employment of the CEO, approving the accounts and any changes to the company's articles of association, a copy of which has been laid before the House.

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