Bloomberg News

Euro-Area AAA Countries Didn’t Discuss More Aid for Greece

February 03, 2012

(Updates with Dutch finance minister’s comments from the fifth paragraph.)

Feb. 3 (Bloomberg) -- Finance ministers from the euro region’s top-rated countries didn’t discuss a higher public sector contribution to a second aid program for Greece today, reflecting reluctance to place bigger burdens on their tax payers.

Greece was the main topic of discussions by finance ministers from Germany, the Netherlands, Luxembourg and Finland in Berlin today, said a person familiar with the talks. The over-indebted country has to do more to return to sustainable finances, the person said.

The parameters of the Oct. 26 European leaders’ summit, which foresee a voluntary writedown of Greek debt held by private creditors, still stand and the outcome of the negotiations between the Greek government and its private creditors has to be awaited, the person said.

“The 130 billion euros ($171 billion) agreed at the October summit must be enough,” for Greece, Finnish Finance Minister Jutta Urpilainen said, according to state-owned broadcaster YLE.

Dutch Finance Minister Jan Kees de Jager, in a posting on his blog, said: “We’re not satisfied with the progress Greece is making.”

“We agreed that sustainable Greek debt can only be obtained with a substantial input from the private sector,” de Jager said. “For us it is key that the IMF will approve the second rescue package for Greece.”

--With assistance from Kati Pohjanpalo in Helsinki and Maaike Noordhuis in Amsterdam. Editors: James Hertling, Leon Mangasarian

To contact the reporter on this story: James Hertling in Paris at jhertling@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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