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Collateral Damage



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The Finnish demand that their portion of the second Greek bailout be adequately collateralized (which could well mean that any net transfer of cash from Helsinki to Athens would be severely reduced) continues to cause ructions. Open Europe’s blog has an excellent round-up here.
 
In particular it is worth noting.that this demand cannot be waived except by a vote in the Finnish parliament, a building filled with MPs extremely conscious of the ever-increastng popularity of the eurosceptic True Finns. At the same time, Greece’s agreement to provide the Finns with collateral will have (one way or another) to be approved by all Eurozone parliaments. As things now stand, that will not happen.
 
Oh yes, the IMF also (reportedly) opposes collateralization (it runs against its senior creditor status).
 
Tick tock.


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