Finland wants Greek assets held as security

FINLAND has proposed that Greek state assets be transferred to a Luxembourg-based holding company and held there as security for new loans to Athens, according to an internal document seen by Reuters.

The plan, drafted in June, remains a central plank of current Finnish demands for collateral in return for providing more aid. If it does not get its way, Finland may pull out of the bailout, sparking renewed chaos on financial markets.

Although small at around €1.4 billion, Finland’s planned support for Greece is important because its triple-A credit rating adds weight to the €109bn rescue agreed on July 21, the second bailout package Athens has received.