Finland will find a Greek collateral model that respects the priority creditor status of the International Monetary Fund and honors existing bondholder claims, Prime Minister Jyrki Katainen said.
“We have to find a solution that is suitable for everybody, for other European Union countries, for Finland and for other creditors,†he said at a press briefing in Helsinki yesterday.
Katainen is struggling to piece together a deal that satisfies Finnish voter demands for extra assurances their bailout contributions will be repaid as international opposition to such arrangements mounts. Europe’s failure to find a solution puts the “credibility of the euro area and each of its member states at stake,†European Union President Herman Van Rompuy said, after a meeting with Katainen in the Finnish capital yesterday.
“The task is not easy, but without solving all the challenges, we can’t achieve the final outcome,†Katainen said. “So now we’re working.â€
