25 August 2011

EUROZONE / GERMANY / FINLAND : Clamor For Bailout Collateral Grows; Some Berlin MPs Want PIIGS To "Give Us Your Gold To Hold."


     There are continuing calls from some Eurozone members to obtain collateral for any new tranches of bailout funds for troubled PIIGS nations...especially Greece.
     The Netherlands, Slovakia, Slovenia, Austria have joined the clamor for collateral after it was disclosed that Finland had secured such demands.
     Finland has continued to demand collateral for its Greek aid contribution...but German Chancellor Angela Merkel denied that cash or gold would be used.
     Merkel said that a call by German Labor Minister Ursula von der Leyen for countries to put up gold as security for bailouts is “not the right way."
     Von der Leyden is seen as a potential rival for Merkel's position.
     Earlier, German lawmakers had urged Portugal to sell its gold to ease debt problems.
     Greece holds 112 tons of gold. Portugal has 422 tons. Spain possesses 282 tons.
     The idea of using Greek real estate as collateral has also been floated.