Dutch FinMin eyes priv sector contrib of 20-30 pct for Greece
Tue Jun 14, 2011 9:32am EDT
* Private sector should contribute 20-30 pct of new loan
* Dutch parliament to decide on support for Greek package
AMSTERDAM, June 14 (Reuters) - The private sector should contribute 20 to 30 percent of any new financing for
Greece, the Dutch Finance Minister said on Tuesday, calling for a substantial commitment from European banks, pension funds and insurers.
Germany is pushing hard for commercial banks to contribute to the cost of any new Greek bailout package, but has not yet convinced the European Central Bank and ratings agencies that this can be done without triggering a credit default.
Markets have been expecting the private sector to contribute around a third of the total package.
Dutch Finance Minister Jan Kees de Jager has warned that it may become increasingly difficult to drum up support from Dutch taxpayers for
euro zone bailouts.
The minority coalition government's main ally in parliament -- the populist, anti-Islam Freedom Party headed by Geert Wilders -- is strongly opposed to such financial rescues.
De Jager told parliament on Tuesday he wanted banks, insurers and pension funds to contribute 20-30 percent of any new loan to Greece, Dutch news agency ANP reported from The Hague.
In a letter to parliament on Monday, De Jager said: "For me it is inseparable, that I will only consider an additional aid programme for Greece provided... the private sector makes a substantial contribution."
He added this could take the form of an extension of the maturity of Greek debt by private sector investors who already have exposure to Greek debt.
Other conditions included Greece making "rigorous" progress on structural reforms to cut its budget deficit, International Monetary Fund involvement and privatisation of state assets.
"I will do everything possible together with like-minded member states to ensure that strict conditions are imposed on a possible additional aid programme," De Jager wrote.