Request by Some for Collateral Is New Hurdle for Greek Bailout

Though the three countries — Austria, the Netherlands and Slovakia — are small or midsize economies, accounting for little more than 10 percent of the new bailout of 109 billion euros ($156 billion), their intervention presents a headache for policy makers.

“If this spreads as we fear it could, it is not a minor complication,” said one European official who spoke on condition of anonymity.

The effort threatens to complicate negotiations on the second package of aid agreed to by euro zone leaders in July, creating an additional problem for officials seeking to bring the Continent’s debt crisis under control.

During negotiations on July’s bailout deal, Finland insisted on collateral being offered by the Greeks, and the country has negotiated a bilateral arrangement with Athens. That plan is now being discussed by officials from the other euro zone nations, whose approval is needed.

In a statement, Amadeu Altafaj Tardio, a European Commission spokesman, highlighted “the importance of rapid and full implementation” of the July deal “to safeguard financial stability in Europe.”

“The euro area member states also agreed that a collateral arrangement will be put in place where appropriate,” the statement said. “The euro area member states will now have to assess the outcome of these bilateral discussions between the Finnish and Greek finance ministers in light of these conclusions.”

He added that the commission had not been formally informed about any other requests by countries for a deal similar to that offered to Finland.

In the deal between Athens and Helsinki, Greece is offering Finland a deposit to back loans, and Finland has said that this cash plus interest would be comparable to its contribution to the rescue.

It is likely that Athens would struggle to find the capital for similar deals with other countries.

But political pressure is growing in creditor countries. In the Netherlands this week, Parliament debated the Dutch contribution to the second Greek rescue. Such debate has made it difficult for governments to explain why Finland is receiving preferential treatment.

The Austrian Finance Ministry said that it had made its position clear before and that its latest comments were in line with what euro zone leaders agreed to at the July 21 meeting. “If there is to be a model for collateral, Austria would also make a claim,” a spokesman, Harald Waiglein, said, according to Reuters.

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