LCH SA to clear EU’s SURE bonds
- €87.4 billion of loans will be provided to 16 EU member states through EU’s SURE programme
- LCH SA to support the EU SURE programme by clearing these Bonds
- Clearing provides enhanced risk management, liquidity and efficiencies to market participants
- Members will benefit from clearing at RepoClear’s deep netting pool of EUR debt
LCH, a leading global clearing house, today announced that it will be supporting the clearing of bonds issued as part of the European Union’s temporary support to mitigate unemployment risks in an emergency (SURE) programme*. Bonds issued as part of the scheme will be eligible for clearing at LCH SA’s RepoClear service. Participants in the market will therefore be able to benefit from enhanced counterparty risk management as well as operational and capital efficiencies. LCH SA offers clearing of Euro-denominated bonds and repos across 13 government bond markets
€87.4 billion of loans will be provided to 16 EU member states under the SURE programme, which aims to help finance increased national expenditure on short-term work schemes and other similar measures. Similarly, LCH SA will support and clear the upcoming Next Generation EU Bonds.
Christophe Hémon, CEO, LCH SA, said: “The Covid-19 pandemic has significantly impacted both public health and the labour market across the globe. The EU’s SURE programme offers vital financing for employment schemes throughout the EU. At LCH, we are committed to supporting financial stability and we are delighted to be in a position to support this programme and contribute to the EU’s economic recovery by clearing the new debt.”
For further information
Rhiannon Davies / Christopher Loscher, Tel: +44 (0)20 7797 1222
Notes to editors
*In May 2019, the European Council adopted temporary support to mitigate unemployment risks in an emergency (SURE). As part of its package to tackle the economic impact of COVID-19, SURE, was put in place to provide up to €100 billion of loans under favourable terms to member states.
The instrument enables member states to request EU financial support to help finance the sudden and severe increases of national public expenditure, as from 1 February 2020, related to national short-time work schemes and similar measures, including for self-employed persons, or to some health-related measures, in particular at the work place in response to the crisis. Further information can be found: https://www.consilium.europa.eu/en/press/press-releases/2020/09/25/covid-19-council-approves-87-4-billion-in-financial-support-for-member-states-under-sure/