Finland says problematic states should issue secured bonds

29.06.2012 11:50
Finland says problematic states should issue secured bonds

YEREVAN, June 29. /ARKA/. Prime Minister of Finland Jyrki Katainen said problematic states of the euro zone should auction secured bonds for making it easier to enter the markets and reducing the cost of their borrowings, RIA Novosti reports.

State assets or fiscal charges supposed for payment of rates on the state debt could provide such bonds, he told the journalists on Thursday.

Finland issued secured bonds in 1990s, Ketained added.

At the moment Greece, Ireland and Portugal are functioning their budgets through financial aid from euro zone and IMF. The access to long-term and average-term capital market are denied for them, that’s why they can’t refinance their debt. Greece should have started gradually entering the markets in 2012, however failed. Thereby the second package for financial aid was designed for the country. Ireland and Portugal are expected to enter the markets again in 2013. As of now the countries of the euro zone hope to see these three states at the markets again as delay in bonds issue will require additional investments from the euro zone and International Monetary Fund.

The investors are concerned that Italy and Spain can also require the financial aid (now Spain is requiring only aid for the banking system). --0--


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