Greek Tragedy: Is This A Joke?31 August, 2011, 16:45. Posted by Zarathustra
Tags: Economy, European, Greece
And that would be a demonstration of the brilliance of European politicians (sarcastic).
We know that earlier Finland wants to get some collateral for its contribution of the Greek bailout, and it is presumably going nowhere. Now they’ve got a new plan.
Via Reuters, the European Financial Stability Facility wants to have Greek bank shares as collateral:
Finland and other euro zone countries might get Greek bank shares as security in exchange for new loans to Athens, German newspaper Handelsblatt said.
According to the report citing unnamed sources, Klaus Regling, the head of European Financial Stability Facility (EFSF) has introduced the idea to euro state finance ministers, and officials are due to discuss the issue early next week.
So they want to have collateral for their loans to Greece to prevent losses, and they are going to get Greek bank shares as collateral, which will be worthless anyway if Greece does default. What a brilliant idea.