PM, finance minister, say Czech Republic will not guarantee possible loan to Greece

The Czech government has come out staunchly against the idea that the Czech Republic could act as a guarantor for any loans to Greece under a proposed bailout agreed by the Eurozone countries, both Prime Minister Bohuslav Sobotka and the country’s finance minister, Andrej Babiš, made clear after meeting on Monday. Europe is considering a short-term loan for Greece from the European Financial Stabilisation Mechanism, as part of a proposed bailout package; the mechanism applies to all 28 member states. In the Czech Republic’s case that would mean guaranteeing 1.13 percent of said loan. Finance Minister Babiš stated on Monday that the European Council had said the EFSM would not be used after 2013; he added the Czech Republic was against the mechanism being used now. Earlier, the Czech News Agency quoted the State Secretary for European Affairs Tomáš Prouza as saying the country could be called upon to provide a guarantee.

Author: Jan Velinger