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bl<>Bailout Fatigue Fuels Finland Collateral Demand

By Kati Pohjanpalo - Aug 30, 2011 5:33 AM ET

Finland’s demand for collateral on new Greek loans leaves European leaders with two choices: accept the AAA rated nation’s terms and risk the rescue plan, or reject collateral and help bring Finnish euro-skeptics to power.

Prime Minister Jyrki Katainen “can’t back down on the collateral demand as his government would likely collapse,” said Timo Tyrvaeinen, Chief Economist at Aktia Oyj in Helsinki. “That could mean new elections quite soon” and risk the euro- skeptic Finns party, which has rejected all bailouts, coming to power.

cont http://www.bloomberg.com/news/2011-08-29/finland-collateral-demand-fueled-by-bailout-fatigue.html