The Federal Reserve lends an amount equal to the market value of the ABS less a haircut and the loan is secured at all times by the ABS. With funding from the CARES Act, Treasury has committed to make a $ billion equity investment in the SPV.
To ensure that sustainable public finances are regarded not just as an entry requirement for monetary union but also as an ongoing task, a strong institutional framework is needed; a set of rules that aligns the interests of national fiscal policymakers with the rest of the monetary union and bridges the gap between national fiscal policies and a union-wide monetary policy.