Finnish Finance Minister Jutta Urpilainen, demanding that banks be required to shoulder part of the costs in resolving unsustainable debt levels in Greece, Ireland, and Portugal. The Finnish government will no longer disburse any money towards a bailout without collateral of equal value, which breaks from the standard eurozone practice of just giving the cash and hoping very much that someday it gets paid back.
Honestly I don’t understand how any eurozone country can demand any less than what Finland is demanding here. Like, if your government was giving billions in low-interest zero-collateral loans to another country’s government to shield big banks in a third country from having to take a financial hit, wouldn’t you be voting them the eff out at the next election? I sure would.
Yields on Italy’s benchmark 10-year bonds closed above 5 percent for the first time since November 2008 on July 6 and were at 5.55 percent, a nine-year high, at 1:45 p.m. in London today. Greece, Ireland and Portugal all had to ask for international assistance after their 10-year yields rose past 7 percent.