LONDON Aug 22 A series of agreements forcing
Greece to provide collateral in return for aid from foreign
governments would be negative for the credit ratings of Greece
and other troubled euro zone states, Moody's ratings agency said
The agency also said such deals showed a lack of will in
some euro zone countries that put more pressure on Germany and
France to take stronger steps to support the euro project.
Austria, the Netherlands and Slovakia said on Friday they
wanted collateral on their loans to Greece after Finland secured
such a commitment, but Greek officials have said they were not
talking to countries other than Finland about such a plan.
Moody's warned that the pursuit of such agreements could
delay the next tranche of aid for Greece and threaten to cause a
default on payments on its debt.
It said a proliferation of collateral agreements would also
limit the availability of funds for future bailout programs, and
that for these reasons it expected other euro area members
ultimately to reject the Finland-Greece deal.
"The tentative Finnish-Greek collateral accord raises
concerns about the willingness and ability of some euro area
policymakers to implement measures that may prove necessary to
preserve the stability of the European Monetary Union," it said.
"This reticence places greater pressure on Germany and
France to stake out a strongly supportive stance toward the euro
area, with more concrete and immediate effect than the proposals
the two countries made last week, in order to shore up the
(Editing by John Stonestreet)