ATHENS (Dow Jones)--Discussions between Greece and Finland over a deal to provide Helsinki with collateral in exchange for the Nordic country providing fresh aid are focused only on cash collateral and don't involve any property rights, Greece's finance minister said Wednesday.
"We are only speaking about guarantees of a financial nature...and guarantees that do not include claims on property," Evangelos Venizelos said in a radio interview.
The deal, which was announced this month, involves Greece providing several hundred million euros worth of cash collateral to Finland in exchange for the Finnish contribution to Europe's temporary bailout facility.
That fund, the European Financial Stability Facility, is being used to help finance a fresh EUR109 billion assistance package for Greece that was agreed to at a July 21 summit of European leaders.
But the deal has drawn criticism from other European countries--including Germany, Austria and the Netherlands, among others--and has become a fresh obstacle to the Greek bailout. In the past two weeks, officials from the 17 countries that use the euro have been holding almost daily discussions in an effort to resolve the dispute.
Greece objects to any form of property being used as collateral, regarding it as an infringement on its sovereign rights.
In his remarks, Venizelos said other countries were arrayed against Finland's demand for collateral, suggesting that Helsinki was isolated on the issue.
"In repeated, more than five meetings of Eurogroup deputies, all of the other countries are against Finland," Venizelos said. "All the other countries that say they too want guarantees are saying that because they don't think it right that Finland should receive guarantees."
His remarks follow recent media reports suggesting that alternative solutions are being sought, including a proposal reportedly advanced by Finland to use Greek state-owned assets slated for privatization as collateral.
A separate report in German newspaper Handelsblatt Wednesday, citing European Union diplomats, says the head of the EFSF has proposed using Greek banking shares as collateral.
Greece has established a EUR10 billion fund to recapitalize its banks, which is due to be boosted with a further EUR20 billion injection under the new aid package. In exchange for receiving that capital, the banks will issue common shares to the Greek state.
According to the Handelsblatt report, the proposal calls for the Greek government to provide those common shares as collateral.
Earlier Wednesday, Finnish Prime Minister Jyrki Katainen said he expects euro-zone countries to agree on a loan collateral deal between Finland and Greece within "a few days or weeks."
Source: http://online.wsj.com
"We are only speaking about guarantees of a financial nature...and guarantees that do not include claims on property," Evangelos Venizelos said in a radio interview.
The deal, which was announced this month, involves Greece providing several hundred million euros worth of cash collateral to Finland in exchange for the Finnish contribution to Europe's temporary bailout facility.
That fund, the European Financial Stability Facility, is being used to help finance a fresh EUR109 billion assistance package for Greece that was agreed to at a July 21 summit of European leaders.
But the deal has drawn criticism from other European countries--including Germany, Austria and the Netherlands, among others--and has become a fresh obstacle to the Greek bailout. In the past two weeks, officials from the 17 countries that use the euro have been holding almost daily discussions in an effort to resolve the dispute.
Greece objects to any form of property being used as collateral, regarding it as an infringement on its sovereign rights.
In his remarks, Venizelos said other countries were arrayed against Finland's demand for collateral, suggesting that Helsinki was isolated on the issue.
"In repeated, more than five meetings of Eurogroup deputies, all of the other countries are against Finland," Venizelos said. "All the other countries that say they too want guarantees are saying that because they don't think it right that Finland should receive guarantees."
His remarks follow recent media reports suggesting that alternative solutions are being sought, including a proposal reportedly advanced by Finland to use Greek state-owned assets slated for privatization as collateral.
A separate report in German newspaper Handelsblatt Wednesday, citing European Union diplomats, says the head of the EFSF has proposed using Greek banking shares as collateral.
Greece has established a EUR10 billion fund to recapitalize its banks, which is due to be boosted with a further EUR20 billion injection under the new aid package. In exchange for receiving that capital, the banks will issue common shares to the Greek state.
According to the Handelsblatt report, the proposal calls for the Greek government to provide those common shares as collateral.
Earlier Wednesday, Finnish Prime Minister Jyrki Katainen said he expects euro-zone countries to agree on a loan collateral deal between Finland and Greece within "a few days or weeks."
Source: http://online.wsj.com
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