50. Stabilization Funds. Стабилизационные фонды.

A stabilization fund generally refers to a mechanism set up by a government or central bank to insulate the domestic economy from large influxes of revenue, as from commodities such as oil. A primary motivation is maintaining a steady level of government revenue in the face of major commodity price fluctuations, as well as the avoidance of inflation and associated atrophy of other domestic sectors. This generally involves the purchase of foreign denominated debt, especially if the goal is to prevent overheating in the domestic economy.

The European Financial Stability Facility (EFSF) is a special purpose vehicle financed by members of the Eurozone to address the European sovereign-debt crisis. It was agreed by the 27 member states of the European Union on 9 May 2010, with the objective of preserving financial stability in Europe by providing financial assistance to Eurozone states in economic difficulty. The EFSF is authorized to borrow up to €440 billion. The EFSF can issue bonds or other debt instruments on the market with the support of the German Finance Agency to raise the funds needed to provide loans to Eurozone countries in financial troubles, recapitalize banks or buy sovereign debt. Emissions of bonds would be backed by guarantees given by the euro area member states in proportion to their share in the paid-up capital of the European Central Bank. Since the EFSF was activated in 2011 to lend money to Ireland and Portugal, the Facility will exist until its last obligation has been fully repaid.

The Facility can only act after a support request is made by a eurozone member state and a country programme has been negotiated with the European Commission and the IMF and after such a programme has been unanimously accepted by the Euro Group (eurozone finance ministers) and a memorandum of understanding is signed. This would only occur when the country is unable to borrow on markets at acceptable rates. If there is a request from a eurozone member state for financial assistance, it will take three to four weeks to draw up a support programme including sending experts from the Commission, the IMF and the ECB to the country in difficulty. Once the Euro Group have approved the country programme, the EFSF would need several working days to raise the necessary funds and disburse the loan.

The Exchange Stabilization Fund (ESF) is an emergency reserve fund of the United States Treasury Department, normally used for foreign exchange intervention. This arrangement allows the US government to influence currency exchange rates without affecting domestic money supply.

• The Treasury Department's Exchange Stabilization Fund (ESF) buys and sells foreign currency to promote exchange rate stability and counter disorderly conditions in the foreign exchange market.

• The ESF is used to provide short-term credit to foreign governments and monetary authorities and to hold and administer Special Drawing Rights.

• ESF operations are normally conducted through the Federal Reserve Bank of New York in its capacity as fiscal agent for the Treasury Department.

The New York Fed, which executes foreign operations on behalf of the Federal Reserve System and the Treasury, acts as an intermediary for the parties involved when the ESF provides short-term financing to foreign governments. However, it neither guarantees, nor profits from, the loans. The ESF was structured to be self-financing. Its resources, which are held in both dollars and foreign currency, include retained earnings. Currently, the New York Fed invests ESF foreign currency balances in instruments that yield market-related rates of return and have a high degree of liquidity and credit quality, such as securities issued by foreign governments. In addition to interest earned on assets, the ESF's balance sheet also includes gains or losses on exchange operations.

Money and banking (Russian Federation).