BRATISLAVA, June 7, (WEBNOVINY) — The potential new loan to Greece will definitely require tougher guarantees, Slovak Finance Minister Ivan Miklos said at a press conference Tuesday. “With Greece, the specific thing is that it is really obvious that it is not only an issue of liquidity. That is the crucial problem. At the same time, the degree of willingness and political will to fulfill even the first program is questionable,” he stated. In previous weeks, the minister claimed that it is necessary to determine whether troubled countries have a problem with liquidity or solvency, that is whether their access to financing is temporarily limited or whether there is a deeper problem. In the case of deeper issues, he believes a discussion of debt restructuring is legitimate.
On Tuesday, Miklos rejected speculation by the German daily Handelsblatt that Slovakia could block further aid to the debt-stricken country. However, he added that clear guarantees are necessary for approval of a new Greek package. In his opinion, the issue of stronger guarantees is logical in discussing a second Greek bailout. As for the political commitment to fulfill this recovery program, it should not apply to government solely, but the opposition as well. In addition to this guarantee, it is necessary to discuss the issue of a certain degree of collateralization as guarantee of loan payback, the necessity of privatization and participation of the private sector.
Slovakia refused to participate in the first, EUR 110 billion euro rescue package for debt-ridden Greece last year. However, it supported the European Financial Stability Facility (EFSF) bailout fund. As Miklos noted, Slovakia cannot avoid participation in a discussion of the new Greek bailout via the EFSF, as it is now a member of the system. He added that Slovakia would not agree to shifting the first Greek loan to EFSF. “We did not agree with the bailout and that implies that we will not agree to moving that first loan to EFSF. But we are part of this project and the rules apply to every country,” the minister stated.
SITA