Finland Is Negotiating Greek Collateral Model, Demand Remains ‘Absolute’
Finland remains committed to its demand for collateral in exchange for Greek bailout guarantees, two government officials close to the talks said.
The AAA rated euro member is still in negotiations over the final model the collateral arrangement will take, two aides to the Helsinki-based government, who requested anonymity in line with policy, said by telephone today. A report today in the newspaper EU Observer saying Finland had abandoned its collateral demands was incorrect, both aides said.
Finland’s cash collateral arrangement with Greece, unveiled on Aug. 16, triggered a backlash of criticism and prompted calls for similar deals from countries including Austria and the Netherlands, which both share Finland’s AAA rating. The northernmost euro member is seeking collateral in order to protect its right to extra assurances that its bailout commitment will be repaid.
Finance Minister Jutta Urpilainen said yesterday euro members critical of the deal must devise an “acceptable” model. Euro-area governments are “looking for a solution” to the dispute over collateral for further aid to Greece, Bertrand Benoit, a German Finance Ministry spokesman said in an e-mailed statement today.
To contact the reporter on this story: Kati Pohjanpalo in Helsinki at kpohjanpalo@bloomberg.net
To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net
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