Finland to Forge Collateral Deal IMF Can Accept

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.”

Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell