LONDON Aug 26 The cost of insuring Greek debt against default rose on Friday, nearing record highs as the row over a deal with Finland to back its bailout contributions with collateral showed no sign of easing.
Collateral remains an "absolute precondition" for Finland to take part in the euro zone's second bailout package for Greece, a senior Finnish finance official said on Friday.
Five-year credit default swaps (CDS) on Greek government debt rose to 2,300 basis points, up 92 bps from closing levels seen on Thursday according to data monitor Markit. This is within around 50 basis points of the record high which was also tested in the previous session.
However, Markit analyst Gavan Nolan said liquidity in the market was very thin. (Reporting by William James)