Finnish FM: EU rescue mechanism will calm market

08:28, May 11, 2010      

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Finnish Finance Minister Jyrki Katainen said on Monday that he was confident the rescue mechanism worth up to 750 billion euros (956 billion U.S. dollars) agreed on by EU finance ministers in Brussels would calm market.

According to Finnish media's report, Katainen said after the extraordinary meeting on Monday that these arrangements are necessary, adding that with the massive operation, a market in turmoil can be brought to its senses and the damages minimized.

Meanwhile, he noted that countries getting loans through the rescue mechanism will have to pay the interests and abide by strict requirements as Greece did.

Roger Wessman, research director of Nordea Bank, said that he believed that the stability package would stabilize the market at least for now. Therefore, the euro countries in difficulties would avoid from bankruptcy and a new financial crisis would be averted.

However, all the problems of the euro zone can't be solved merely by these actions, warned Wessman in an interview with Finnish Broadcasting Company on Monday.

Those countries in crisis should learn to rehabilitate its economy, otherwise bigger problems will be seen in coming years, he said.

European Union (EU) finance ministers agreed early Monday on an unprecedented rescue mechanism worth up to 750 billion euros to prevent spread of the Greek debt crisis and rebuild confidence in financial markets.



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