Finland And Greece Agree On Loan Guarantees

[emezico]

Finnish Finance Minister, Jutta Urpilainen, said in a Tuesday press conference that Finland and Greece have reached common ground on loan guarantees demanded by Finland for its participation in the Greek bailout package. The agreement still requires approval from other eurozone states.

The Finnish and Greek Finance Ministries have agreed that Athens will transfer a sum to the Finnish state, which, together with interest on that sum, will serve to guarantee Finland's share in the bailout loan to the troubled southern state.

"This is comes from the idea that Greece will make a cash deposit. This deposit will be invested in low-risk long-term debt securities. The deposit will correspond to the sum which Greece is to receive through the temporary bailout fund loan," Urpilainen said.

The guarantee sum would, however, be only a fraction of the money that Finland is contributing to the rescue package.

Urpilainen has not divulged a concrete sum, because that is still being negotiated. It is, however, believed to be hundreds of millions of euros.

The Minister of Finance praised the agreement that was reached, saying that this was even better than the originally proposed suggestion that a company could be created to manage a part of Greek state property.

Earlier, she had said that decisions concerning Finland's participation in Greek loans were in the nation's own hands.

Finland's opposition parties criticised the agreement. True Finns chair Timo Soini and Centre Party leader Mari Kiviniemi said that the deal leaves many questions open.

YLE