Appendix 1. A timeline of the Vienna Initiative
October 26th 2008 – IMF approves US$16.5 billion Stand-By Agreement for Ukraine.
November 6th 2008 – IMF approves €12.3 billion Stand-By Arrangement for Hungary.
November 27th 2008 – Six bank groups (Raiffeisen, Erste, Intesa SP, Société Générale, KBC, Unicredit) write a letter to the EC on financial stability concerns in emerging Europe and urge action by host governments. EBRD (copied on the letter), EIB and IFC start to put together a joint action plan, which culminates in a joint declaration on February 27 (see below).
December 23rd 2008 – IMF Announces €1.7 Billion Stand-By Agreement for Latvia, coordinated with the European Commission.
December 17th 2008– The six multinational bank groups meet in Vienna to discuss next steps by the industry. EBRD and EIB are invited.
January 16th 2009 – IMF approves €402.5 million Stand-By Arrangement for Serbia
January 23rd 2009 – First “Vienna Initiative” meeting at the Austrian Ministry of Finance. It is agreed that the IMF will develop principles of burden sharing between home and host-country authorities and banks.
End-January and early February 2009 – Country meetings for coordinated action in Ukraine and Romania, bringing together the key subsidiaries of bank groups with the IMF and other IFIs and, in Ukraine, the government.
February 27th 2009 – The heads of EBRD, EIB, and the World Bank Group launch, as part of the VI framework, the Joint IFI Action Plan, offering up to €24.5 billion of support to systemic banks in the region and lending to the real economy.
March 17th 2009 – Second VI meeting. IMF presents a distribution of burden sharing rules between home and host country authorities which is broadly agreed on and to be used during the crisis. Host country responsibilities: prudent macroeconomic policies, support of deposit insurance schemes, and the supply of local currency liquidity irrespective of bank ownership. Parent banks and home country responsibilities: rollover/maintain exposures to the extent possible, recapitalize subsidiaries following stress tests; home county national bank support packages can be used for supporting subsidiaries.
March 15th-June 15th 2009– Under the Joint IFI Action Plan the EBRD, EIB, and World Bank Group meet jointly with all 17 main multinational bank groups to assess their needs.
March 26th-27th 2009 – First set of parent bank commitment letters signed for Romania and Serbia, at the Joint Vienna Institute, Vienna.
April 25th 2009 – Meeting of IFIs and home and host governments during the IMF-World Bank Spring meetings, Washington DC, to take stock and agree on next steps under the VI.
May 4th 2009 – IMF approves €12.9 billion Stand-By Arrangement for Romania as part of a EUR 20 billion package of balance of payments support approved by the European Commission.
May 7th 2009 –EBRD makes investments worth over €400 million to UniCredit subsidiaries across eight countries in the ECA region.
May 15th 2009 – Joint IFI Action Plan: Meeting of key parent banks, home and host governments and IFIs during the EBRD Annual Meetings, London.
May 20th 2009 – Commitment letter signed for Hungary and Romania in Brussels.
June 22nd 2009 – Joint concluding statement signed for Bosnia and Herzegovina in Vienna.
July 8th 2009–IMF €1.52 billion Stand-By Agreement for Bosnia and Herzegovina.
July 10th 2009 – EBRD sets up a €220 million financing facility to the Hungarian subsidiaries of OTP Bank and €100 million to Erste Bank.
July 29th 2009 – EBRD announces investment of €400 million in the subsidiaries of Société Générale.
September 11th 2009 – Parent bank issue a concluding statement for Latvia in Stockholm.
September 23rd 2009 – EBRD approves a €150 million financing package to Raiffeisen Bank subsidiaries in Ukraine, Romania, and Russia.
September 24th 2009 – First ‘horizontal’ Full-Forum meeting of the Vienna Initiative in Brussels. Discussion of deleveraging and recapitalization needs – first signal of moving out of the systemic risk phase. Participants: 17 parent bank groups, their home and host supervisors and fiscal authorities, IMF, EC, EBRD, EIB, WB, ECB, CEBS.
October 5th 2009 – Meeting with CEOs of parent bank groups, home and host governments and heads of IFIs at the IMF-World Bank Annual Meetings, Istanbul. Joint Progress Report issued by the Joint IFI Action Plan participants (EBRD, EIB, WB).
November 18-19th 2009 – Follow-up meetings with parent banks for Romania and Hungary in Brussels. Start of discussions with banks on addressing the vulnerability of foreign exchange (FX) exposures.
January 18th 2010 – Coordination meeting with the IMF, World Bank, EIB, EC in Vienna. Shift from crisis management to addressing the region’s vulnerabilities (lack of local capital markets, FX exposures) and the legacy of the crisis (balance sheet clean-up, distressed asset management).
February 25th 2010 – EBRD provides a €100 million financing package to Intesa Sanpaolo subsidiaries in Bosnia and Herzegovina, Serbia and Hungary.
February 26th 2010 – Follow-up meetings on Serbia (with exposure commitments relaxed on the back of good macroeconomic adjustment and recovery) and Bosnia in Vienna.
March 18-19th 2010 – Second ‘horizontal’ Full-forum VI meeting in Athens. Agreement to set up working groups on local currency market development and on the absorption of EU funds. Participants: 20 bank groups, their home and host supervisors and fiscal authorities, IMF, EC, EBRD, EIB, WB, ECB, and CEBS.
May 4th, July 8th, and November 10th 2010 – Meetings of the working group on local currency development under the Vienna Initiative at the EBRD in London.
May 9th 2010– IMF approves €30 billion Stand-By Arrangement for Greece.
June 17th 2010 – Information session and meeting on the absorption of EU funds in Sofia.
July 22nd 2010 – Follow-up Vienna parent bank meeting on Romania and Hungary.
July 26th-August 4th – Joint Commission-IMF-WB mission to Romania to discuss measures to accelerate the absorption of EU structural funds.
October 4th 2010 – EBRD extends just under €1 billion of financing to subsidiaries of Piraeus Bank, National Bank of Greece, Alpha Bank, and EFG Eurobank.
October 6th 2010– Progress Report on implementation of the Joint IFI Action Plan.
End-2010– Expiry of the Vienna Initiative Joint IFI Action Plan.
March 2011 – Final Report on implementation of the Joint IFI Action Plan.
March 17th-18th 2011 – Third ‘horizontal’ full forum meeting under the VI in Brussels to evaluate and consider recommendations of the two working groups.
March 17th 2011 – Follow-up meetings in Brussels with parent banks on Romania.
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