Wall Street Journal
August 24, 2011
Euro-zone governments are discussing a plan to have noncash Greek government assets, including real estate, offered as collateral for a new round of rescue lending to Greece, backing away from a bilateral agreement reached last week between Greece and Finland, officials said Tuesday.
The discussions come as opposition is mounting among the governments to the Finnish-Greek deal—which would see Greece pay Finland hundreds of millions of euros in cash as collateral against the loans. Crucially, German Chancellor Angela Merkel has rejected the deal, said a German lawmaker.
"It can't be that one country gets extra collateral," Ms. Merkel told parliament members of her ruling Christian Democrats, or CDU, in a meeting on European policy, the lawmaker said.
Other governments are now seeking similar deals, saying the arrangement could undermine Greece's ability to repay them.