Finland may sign Greek collateral deal in next few days

Finland may sign a deal on securing collateral in exchange for its commitment to Greece’s second bailout in the “next few days,” Finance Minister Jutta Urpilainen said.

A vote on Finland’s participation in a second Greek bailout could follow next week, she told reporters in Helsinki today. Euro-area finance ministers share a “very strong” common stance in their view on what Greece must do, namely act on its pledges of austerity before more aid can be released, she said.

“The collateral deal must be signed before Finland’s parliament can participate in the second Greek bailout,” Urpilainen said. “These conditions must be fulfilled before Finland’s parliament can give a green light to it.”

Finland last year became the only euro member to secure extra assurances that its commitments to a second Greek rescue would be repaid by insisting on collateral in exchange for more aid. In return, Finland agreed to pay its contribution to the permanent rescue facility, the so-called European Stability Mechanism, up front.

“I hope we could sign the collateral agreement in the next few days,” Urpilainen said.

Asked when the government will be able to bring the second bailout before Finland’s parliament, the finance minister said “that depends on the eurogroup. We must assess whether these criteria we have set have been fulfilled. If they are fulfilled, the eurogroup will allow the process to move forward and for Finland that means probably already next week we could bring it to parliament.”