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European Officials To Discuss Finland Collateral Deal Friday
ATHENS (Dow Jones)--European officials are due to discuss later Friday the issue of a bilateral financing deal between Greece and Finland that threatens to derail a promised bailout for Greece, the country's finance minister said.
"A solution is being sought," Finance Minister Evangelos Venizelos said in parliament. "In a few hours, there will be another session of the representatives of the finance ministers [to discuss the issue]."
The deal, which was announced earlier this month, involves Greece providing several hundred billion euros worth of 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.
However, Finland says it will not contribute to the fund unless it receives collateral in exchange. Since then, several countries--such as Austria, the Netherlands and Germany, among others--have raised objections to the deal.
Concerns that a deadlock on the issue could jeopardize Greece's latest bailout has weighed on investor sentiment with Greek government bond prices plummeting in the past week.
ATHENS (Dow Jones)--European officials are due to discuss later Friday the issue of a bilateral financing deal between Greece and Finland that threatens to derail a promised bailout for Greece, the country's finance minister said.
"A solution is being sought," Finance Minister Evangelos Venizelos said in parliament. "In a few hours, there will be another session of the representatives of the finance ministers [to discuss the issue]."
The deal, which was announced earlier this month, involves Greece providing several hundred billion euros worth of 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.
However, Finland says it will not contribute to the fund unless it receives collateral in exchange. Since then, several countries--such as Austria, the Netherlands and Germany, among others--have raised objections to the deal.
Concerns that a deadlock on the issue could jeopardize Greece's latest bailout has weighed on investor sentiment with Greek government bond prices plummeting in the past week.