Trichet says that he is speaking only as an observer, but that the governments who may end up having to lend to Greece would do so at least at their cost, with no subsidy.
That is news to me, at least. I would have taken the “no subsidy” vow to mean that EU states would lend only at market rates to Greece, not at the rates at which the governments finance themselves…If so, that could save Greece a lot in interest cost.
On collateral, no foreign-denominated debt will be acceptable as collateral.
The IMF alone, would have been a bad thing. As part of a group, not so bad, he says.
