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The European Financial Stability Facility (EFSF) is the rescue fund backed by the eurozone member states to help resolve the eurozone sovereign debt crisis.
Set up in May 2010 alongside the EFSM (European financial stabilisation mechanism), as a Luxembourg company with €440bn in guarantees ready for another Greece-style bail-out. To preserve its triple A credit rating, it must keep cash in reserve, meaning it can lend only about €250bn.
At the end of 2010, it was announced that the EFSF will raise €5bn to €8bn in top-rated triple-A bonds to go towards the €85bn bail-out of Ireland, the second euro-area nation after Greece to seek financial help.