Private sector to stump up 30% of Greek aid: Dutch ministry

14th June 2011, Comments 0 comments

The European private sector must contribute more than 30 percent of possible new financing for debt-saddled Greece, a Dutch finance ministry spokesman said Tuesday.

Finance Ministry spokesman Nils Redeker said Dutch Finance Minister Jan Kees de Jager was asked during a parliamentary debate whether European banks, pension funds and insurers should contribute between 20 and 30 percent of a second loan to Greece.

"It will be more," De Jager said, Redeker confirmed to AFP.

In a letter to the Dutch parliament Monday, De Jager said he reluctantly supported further assistance to Greece and it would have to adhere to strict conditions.

"I would only consider additional assistance to Greece if ... there was a substantial contribution by the private sector," De Jager said in the letter.

The minister added that a "credible, irreversible and ambitious privatisation programme" should also be part of the conditions imposed on Greece in the context of any further assistance.

De Jager said the contribution by "private parties" who had already been exposed to Greek debt, could come in the form of an extension of maturities on the debt they hold.

Greece is threatened by bankruptcy a year after being granted a 110 billion euro loan over three years, funded by the European Union, the International Monetary Fund (IMF) and the European Central Bank.

Germany, the eurozone's largest economy, also wants a second rescue package for Athens to include contributions by private creditors, banks and investment funds as the price of Berlin's involvement.

Eurozone finance ministers were meeting in Brussels on Tuesday to thrash out a solution which they could put to EU leaders at a summit later this month.

© 2011 AFP

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