A dispute over a model for collateral from Greece in exchange for loans has to be solved as quickly as possible to prevent more inconvenience to Athens and other countries, the Finnish prime minister was quoted as saying on Saturday. Finland is standing by a demand for collateral as an absolute precondition for new loans to Greece and made a deal with the debt-laden country earlier this month. But it was rejected by other euro area countries.
Talks on a new collateral model continue, the newspaper said. "This mater has to be solved as soon as possible so Finland's aims will not hurt other countries," Prime Minister Jyrki Katainen said in an interview with the daily newspaper, Helsingin Sanomat. He added it was clear the collateral hurdle would dent Finland's reputation in the European Union and said it was in the interest of the Nordic country to maximise its influence.
Katainen said his six-party government, formed in mid-June, was still learning how to work together. The cabinet will get next year's budget on its plate in September and Katainen urged the parties to stick to a budget framework set by finance ministry.