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Finland May Accept Greek State Property As Collateral-Fin Min
HELSINKI (Dow Jones)--Finnish Finance Minister Jutta Urpilainen Tuesday said Finland could accept shares in a Greece state property management company as collateral for it's participation in a possible second bailout for Greece.
Earlier, Finland's newly elected government had said it would not participate in future bailouts unless it obtains collateral for its guarantee from the member state in question.
Urpilainen said that the Greek state owns a lot of property which could be transferred to a property management company, with company shares serving as guarantees. The model has been developed by bureaucrats at Finland's finance ministry.
"In the future, Finland will not send money abroad without collateral for its money," Urpilainen said in a TV interview on Finnish public broadcaster YLE.
Finland is one of six euro-zone members with an 'AAA' credit rating, and whose guarantees therefore are crucial to ensure that the European Financial Stability Facility, or EFSF, can borrow cheaply on international bond markets. The EFSF, which requires unanimity among all euro zone governments, would then lend that borrowed money to Greece.
HELSINKI (Dow Jones)--Finnish Finance Minister Jutta Urpilainen Tuesday said Finland could accept shares in a Greece state property management company as collateral for it's participation in a possible second bailout for Greece.
Earlier, Finland's newly elected government had said it would not participate in future bailouts unless it obtains collateral for its guarantee from the member state in question.
Urpilainen said that the Greek state owns a lot of property which could be transferred to a property management company, with company shares serving as guarantees. The model has been developed by bureaucrats at Finland's finance ministry.
"In the future, Finland will not send money abroad without collateral for its money," Urpilainen said in a TV interview on Finnish public broadcaster YLE.
Finland is one of six euro-zone members with an 'AAA' credit rating, and whose guarantees therefore are crucial to ensure that the European Financial Stability Facility, or EFSF, can borrow cheaply on international bond markets. The EFSF, which requires unanimity among all euro zone governments, would then lend that borrowed money to Greece.