The word is borrowed from Facility , which the International Monetary Fund (IMF) first used in October 1952 for short-term loans to its member states. Specifically, these were stand-by facilities . According to Article XXX (b) of the IMF Convention, a stand-by facility is the right of an IMF member state to access its “General Resources Account” with a certain amount of credit after a decision by the IMF. Strictly speaking, it is a drawing right that exceeds the quota to which the member state is entitled. These stand-by arrangements are one of the IMF's credit instruments and allow an IMF member state to call up foreign currency up to a certain maximum amount in the event of balance of payments difficulties .
Other IMF facilities
Over time, the IMF set up additional facilities. Another “regular facility” is the “Extended Fund Facility” ( EFF), which has been used since 1974 to remedy structural imbalances in balance of payments . On the regular IMF facilities, there were from 1987 and "concessional assistance" by the facility to compensate for export revenue losses (English compensatory financing facility , CFF; 1963), the systemic transformation facility (English systemic transformation facility , STF, 1993), Poverty Reduction and growth Facility (English poverty reduction and growth facility , PRGF; 1999) and special facilities such as the facility to Supplemental Reserve (English reserve supplemental facility , SRF, 1997) and the contingent credit line (English contingent credit line , CCL, 1999).
The term “facility” was eventually adopted by international credit transactions , where there is the revolving credit facility , stand-by facility , roll-over credit facility or transferable loan facility . In the German banking sat on the other hand in the lending business with non-banks increasingly as an alternative term credit line by where they at current accounts , overdrafts , loans against collateral or effect collateral loans is used as a synonym. Loan commitments that have not been fully or partially used are also referred to as credit lines. The Capital Adequacy Ordinance (CRR) alternates between the terms credit line and facility (Art. 166 Paragraph 8a, Art. 265 Paragraph 3 CRR).
European Central Bank facilities
The Statute of the European System of Central Banks (ESCB) provides so-called "standing facilities" (English standing facility before), of which covered the deposit facility and the marginal lending facility in the ESCB. These facilities are permanently available to the commercial banks and can be used if necessary. The standing facilities are used to provide or absorb overnight liquidity. The interest rates of the standing facilities form an interest rate corridor within which the overnight interest rate moves on the money market. As the key interest rate , they signal the general course of monetary policy . The standing facilities are administered on a decentralized basis by the national central banks.
According to Art. 21.1 of the Treaty on the ESCB, overdrafts or other credit facilities from the ECB or the ESCB to EU member states , regional authorities or public companies / municipal companies are prohibited.
Commercial banks, excess liquidity as deposits ( bank deposits outside the reserve credit unlimited) at ESCB until the start of the next business day to the rate of the deposit facility (English deposit facility ) Create ( daily allowance ). The system can be requested every business day up to the specified time using the TARGET2 communication channel. The deposit is due with the accrued interest at the beginning of the business day following the investment and is credited to the account from which the deposit was withdrawn.
Marginal lending facility
If credit is required, the ESCB grants commercial banks an overnight credit against eligible collateral until the beginning of the next business day at the peak lending rate. The overnight loan can be applied for every business day up to the specified time via the TARGET2 communication channel. An existing account overdraft at the end of a business day is deemed to be an application for an overnight loan in the amount of the overdraft. The commercial banks can obtain liquidity at any time within the framework of the lending limit of their loan collateral and thus avoid liquidity bottlenecks. The main purpose of this instrument is to secure liquidity for commercial banks and to comply with the legal requirements for minimum reserves .
There are facilities (credit lines) that credit institutions as underwriters make available to their corporate customers - who have first-class credit ratings - for the purpose of issuing non-negotiable money market paper (English notes ). These papers have a term of 6 months and can be brought onto the market through various forms of issuance. The credit line of the Revolving Underwriting Facility (RUF) is available to the corporate customer for a revolving use, the derived Note Issuance Facility (NIF) can only be used once. Other, modified forms are the Transferable Revolving Underwriting Facility (TRUF) and variants such as Prime Underwriting Facility (PUF) or Global Revolving Underwriting Facility (GRUF).
In TFEU provides that EU Member States with balance of payments can get difficulties assistance by the Community. In order to make this provision more concrete, the medium-term financial assistance facility to support the Member States' balances of payments was enacted as Regulation (EC) No. 332/2002 of February 18, 2002, which provides for a loan facility limited to 12 billion euros for Member States that do not introduced the euro as their national currency. The competent Council for Economic and Financial Affairs (ECOFIN) decided in 2009 to raise the upper limit of the fund twice from 12 to a total of 50 billion euros from 2007 onwards due to the financial crisis . The aim of the facility is to provide financial aid to every country in the euro zone in times of crisis. So far, Latvia (3.1 billion euros), Hungary (6.5 billion euros) and Romania (5 billion euros) have benefited from this .para. 2
The European Financial Stability Facility (EFSF), founded in June 2010, is a public limited company (French société anonyme ) under Luxembourg law with its registered office in Luxembourg City and served as a provisional stabilization mechanism; In July 2013, it was transferred to the European Stability Mechanism (ESM) as the only institution providing financial support to member states of the euro area and part of the euro rescue package .
Credit facilities are also referred to as the commitments made by governments or international organizations (e.g. development banks ) that provide limited financial assistance ( financial support ) or loans in certain cases, e.g. to cope with natural disasters or in the event of a crisis .
- Georges Paillard, Nature and Functions of Currency Reserves and Development of the Currency Reserve Stock of the Swiss National Bank , 1964, p. 83
- IMF, Articles of Agreement of the International Monetary Fund, last amended on April 28, 2008 , Article XXX (b)
- Alexander Szodruch, State Insolvency and Private Creditors , 2008, p. 91
- Rainer Tetzlaff, World Bank and Monetary Fund - Shaper of the Bretton Woods Era , 1996, p. 87 ff.
- IMF of July 2000, The IMF at a Glance
- Dietmar Dorn / Rainer Fischbach / Volker Letzner, Volkswirtschaftslehre 2: Volkswirtschaftstheorie und -politik , 2010, p. 153 f.
- Guidelines of the ECB, 2012 edition, Chapter 3, 1.3.2
- Guido Eilenberger, Lexikon der Finanzinnovationen , 1996, p. 291
- Adam Reining, Lexikon der Außenwirtschaft , 2003, p. 140
- eur-lex.europa.eu: Council Regulation (EC) No. 431/2009 of May 18, 2009 (PDF)