Bloomberg News

Greek Writedown Must Rise ‘Very Substantially,’ De Jager Says

October 22, 2011

Oct. 22 (Bloomberg) -- Dutch Finance Minister Jan Kees de Jager said the private-sector involvement in the new Greek bailout package must rise “very substantially.”

“There’s a building consensus among the 17 nations that the private-sector contribution must be increased very substantially from the 21 percent in the July package,” De Jager said today in Brussels. “I am not going to give percentages, we need to negotiate with financial institutions.”

De Jager also said finance ministers reached consensus on a bank-recapitalization plan. “On the recapitalization, we have by consensus made a proposal to the European Council and we expect that to be accepted Wednesday. That proposal is fully backed by the Netherlands,” he said.

De Jager said there are “two options on the table” for leveraging of the European Financial Stability Facility. He didn’t elaborate on them.

“Tomorrow will be a very important day, but I expect the definite decisions to be taken Wednesday,” De Jager said.

To contact the reporter on this story: Fred Pals in Brussels at fpals@bloomberg.net

To contact the editor responsible for this story: Jones Hayden at jhayden1@bloomberg.net


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