Finance minister Jutta Urpilainen says that Finland is the only country that will get collateral in return for participation in the bailout.
The other eurozone countries have accepted the agreement, which is similar to that used for an earlier bailout loan paid to Greece. One difference to the Greek deal, which was classified, is the amount of information that will be in the public domain from the start.
Finland’s total share of the bailout amounts to 1.9 billion euros. Some 770 million of that will be guaranteed, 40 percent of the total. Those figures are based on the full 100 billion euros worth of bailout loans, which may not in the end be necessary.
The loan period is 12.5 years, and funds will be paid to Finland each time a tranche of the bailout is transferred to Spain.
PM and Urpilainen satisfied with final result
In return for the collateral, Finland will forego a part of the interest the loans will generate. Urpilainen said that she was 'very satisfied with the final result'.
Prime Minister Jyrki Katainen, of the National Coalition party, also spoke of his satisfaction with the deal, adding that he hoped parliament would quickly approve the package so Finland could participate in ensuring the stability of the Finnish and European economies.
Although Finland has been negotiating with the Spanish government, the contracts are to be signed by Spain’s Deposit Guarantee Fund of Credit Institutions, which is owned by Spanish banks.
The Finnish government will issue a statement to parliament on Wednesday. Lawmakers will then debate the issue on Thursday, with a vote pencilled in for Friday.
Opposition pours cold water on deal
Opposition parties have poured cold water on the deal between Finland and Spain.
Finns Party leader Timo Soini said Finance Minister Jutta Urpilainen's Social Democrats had previously opposed aiding banks. Now, he said, this deal was a smoke screen to help divert more money to cash-strapped financial institutions.
For his part, senior Centre party politician Mauri Pekkarinen noted Finland and Finnish taxpayers would be led down the path to greater responsibility for bailing out the banks.
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