you're reading...

Finland asking for a “deposit” to Greece in exchange for bailout

Amplify’d from www.thepeakeffect.com

>> August 16, 2011 – 


For those who have doubts that the current Euro situation is getting crazier by the day please consider Finland and Greece agree on loan guarantees

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 the Greek state 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. 

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. 

So Finland agrees to lend let’s say 10 Euro to junk Greece and in exchange will get a deposit of 1 Euro which will keep as a guarantee that Greece will pay back the other 9 euro, with interest, at an agreed upon rate.
This is clearly a political trick to avoid anti-bailout resentment in the population as per the practicality of the agreement, it is absurdly laughable. Another proof of desperation rising in Europe and the complete ineffectiveness of any government in dealing with the situation aside from implementing ridiculous publicity stunts.

Read more at www.thepeakeffect.com



No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s



%d bloggers like this: