So far, all payments of the first loan include the term that the IMF is the first to be repaid if the country defaults.
The controversial agreement between the Greek Finance Ministry and Finland technically puts into question this condition as the agreement secures Finland before anyone else. In fact, this agreement disputes the principles of the July 21 agreement, therefore Germany’s reaction is intense.
It remains unknown whether and how the new obstacle will be overcome. On Tuesday, French and German FinMins Baroine and Schaeuble discussed the issue at a meeting in Paris, although it was not officially included in the agenda, while Brussels sources note that there is no “technical” solution to the problem yet.
There is no room for additional collaterals, as besides the issue of equity among the EU members, IMF’s position in the agreement is a major problem, as several board members –particularly Asian representatives- of the IMF have reacted strongly.