Bloomberg News

Finland Says Use of EFSF for Bank Bailouts ‘Can Be Considered’

October 11, 2011

Oct. 11 (Bloomberg) -- Finland still regards European bank bailouts using the bloc’s rescue mechanism as a last resort, Finance Minister Jutta Urpilainen’s aide Matti Hirvola said.

The recapitalization of banks is primarily the task of owners, then the bank’s home state bears the responsibility for the institutions’ solvency and finally the use of the European Financial Stability Facility “can be considered” as a last instance, Hirvola said by phone today.

The comments follow a report on a Finnish government website suggesting that Urpilainen wants Finland to reject outright ever using the EFSF to rescue banks in the region. That report was misleading, Hirvola said. The country this month secured a collateral deal to appease bailout-weary voters, though the deal was a watered-down version of a cash arrangement sought in August.

--Editor: Tasneem Brogger.

To contact the editor responsible for this story: Kati Pohjanpalo at kpohjanpalo@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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