Finland to Greece: No Collateral, No Bailout

Finland’s Prime Minister Jyrki Katainen said Wednesday Helsinki may opt out of its share of a second rescue package for Greece if it is denied collateral on the money. 

The warning comes even though Katainen had said earlier in the month that he would work to find a solution that is mutually acceptable to his own government and to other euro members and creditors, the issue has not been resolved and threatens to scuttle the whole deal.

Bloomberg reported Katainen saying on Wednesday, “The collateral issue is a small detail in a larger package. We’re looking for a solution. But we can’t wait forever, as the issue must be resolved in the next few days.” The possibility that Finland would refuse to contribute a share to the rescue loans if it is not given collateral “remains a possibility,” he said. Finland has a Triple-A credit rating and it wants additional assurances that any money it contributes to the bailout loans will be repaid.