BRUSSELS (Reuters) - Euro zone Finance Ministers are Likely to back a bailout package for Portugal on Monday, with New conditions set by Finland, in talks overshadowed by charges Against IMF chief Dominique Strauss-Kahn for Attempted rape.
Strauss-Kahn's Place in the talks Brusssels Will Be Taken by International Monetary Fund Deputy Managing Director Nemat Shafik, The organization said.
The meeting WAS aussi Expected to pressure Greece to announce more austerity steps to secure emergency Further Funding.A senior Greek officials said on Sunday The arrest of Strauss-Kahn May Cause Some Delay to U.S. icts / IMF bailout plan.
Strauss-Kahn HAD Been due to German Chancellor Angela Merkel Meet as well as "Attend the meeting of euro zone finance ministry.
"This Might definitely cause delays Some In The Short Term," the official Told Reuters is provided of anonymity, Referring to Meeting Planned for Sunday and Monday.
"Strauss-Kahn Had a very good Knowledge of Greece's situation."
But The official added: "This Will not Change The IMF's policy is Greece.Greece Will continues to Implement icts Programe. "
Agreed Portugal this month is a 78 billion-euro loan program over Three Years With The European Commission And The International Monetary Fund (IMF).
The Plan Needs To Be Approved unanimously by euro area Finance Ministers, Finland's parliament to set conditions for ITS support on Friday, Saying Lisbon HAD to ask private bondholders to Maintain Their exposure to Portuguese debt.
The second condition set by Finland is for Portugal to Embark privatization program was to raise funds.
If euro area Finance Ministers AGREE To The Finnish demands, it has changed Mark Wills From The bailout programs of Ireland and Greece, Which Did Not Need for "any mention private investors exposure to Maintain Their To The Countries' debt.
"I am confident thats the Portuguese Package Will Be Approved on Monday," Economic and Monetary Affairs Commissioner Olli Rehn, Finn, Told reporters there Friday.
Rehn Said The interest rate on loan to Portugal, To Be Decided By The Ministers, Would Be Between 5.5 and 6.0 percent.
This Is In Line With The borrowing cost Set By The initial euro zone agreement on Emergency Funding Through the European Financial Stability Facility (EFSF), Rather Than a more TOO EFSF lending rate in March EU leaders Suggested.
Greek borrowing costs: Originally at around 2.5 percent, Were Lowered by euro zone to 4.2 percent loaders in March.But The interest rate for Ireland of around 5.8 percent Was Not Cut Because of a dispute over Irish corporate tax levels, one Which France and Germany see as too low.
Finland aussi That Decided to take part in Portugal after bailouts Any Further, It Would require a borrowing country to Provide collateral for emergency loans From The euro zone, to limit Taxpayers' exposure cash till payday.
MORE MONEY FOR GREECE - FOR MORE Austerity and Reform
This Is important for Greece, Which has Already has 110 billion-euro EU / IMF bailout Until mid-2013, to Which Is Likely to Need more funds next year Because initial forecasts That It Could return to Markets in 2012 to Be APPEAR unrealistic.
A euro zone source Involved In The Preparation Of The Ministers 'meeting Told Reuters Greek Additional financing in 2012 and 2013 Needs Would Be Discussed At The Ministers' meeting.
Yet the Position Of The Finnish parliament That IS Likely to mean to get funds to cover icts Additional financing gap, Estimated at 65 billion euros over The Next Two Years, Greece Will Have to Provide collateral for the New Euro area loans.
The sources said In The Countries That single currency area "could come Up With Additional Funding for Greece if Athens is only the fiscal consolidation and reform targets it has Already Committed Itself to, Which Would require new steps.
Rehn WAS it clear Friday Greece That Had To Do More, Because It Was missing icts deficit reduction targets.
"Because Of Weaker than expected last year croissance plus tax slippage Some, There Is Need to Take Additional Measures in fiscal consolidation this year" still, "Rehn said.
"How much, depends ... Will Our Mission is Currently in Athens. Yes, definitely There Is a Need to Take Further consolidation measures," he said.
In return for The Emergency Loans From The 110 one billion package, Greece has Committed Itself to Bring icts budget deficit down to 7.6 percent of gross domestic product this year, 6.5 percent in 2012, 4.9 percent in 2013 and 2.6 percent in 2014.
The European Commission forecast is Friday UNLESS Policies That changed, Greece Would Have a budget deficit of 9.5 percent of GDP this year and 9.3 percent in 2012 - well above-the Agreed targets In The USA / IMF program.
Greek debt to 157.7 percent rise Would of Gross Domestic Product this year and to 166.1 percent in 2012, Rather Than Be 145.2 and 148.8 percent as "under the EU / IMF plan targets, la Commission forecast.
The Monday meeting, however, Will Not Make Any decisions we Greece. The Ministers want to wait for the Results Of The joint U.S. and IMF mission in Athens Which Is Likely to finish icts assessment of Greek reforms and The Country's debt sustainability only Later in the Week.
The euro area Ministers and Their Counterparts from EU Countries Outside the Euro Area Still Will aussi Chat is Monday the setting up of The European Stability Mechanism - the euro zone bailout permanent fund to replace That Is The EFSF from mid-2013 onwards.
