Finland Row To Be Solved as Greek Bailout Finalised

October 07 00:00 2011

New York, October 7 ( – The European authorities may have finally found a way around the Finnish deadlock. The representatives of all 17 nations that make up the Eurozone are expected to meet today at 5pm at Luxembourg to chalk out the second bailout plan which may stop Greece from going into financial ruin and give the other weak European economies a chance to recover.

The deadlock was formed as the Finnish government was skeptical about throwing good money after bad. They made their stance pretty clear that they wanted collateral that would secure their loans to Greece which is obviously not in a sound financial state. This demand had shaken European and global markets. Fear was rampant that if Greece gave in to these demands the other European countries might come in with similar demands and the whole bailout package may become unviable.

Finally the issue is resolved because Finland now receives collateral from Greece, however at a cost. Finland does not get a share in any upside, if any. Also, in the event of a default, the collateral assumes junior status and some other stakeholders will be paid before Finland gets its share. Analysts say that this sounds like a fair deal to all parties and at the meeting today the bailout should positively be finalized.