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The Dutch Minister of Finance, Wopke Hoekstra, intends to establish a series of conditions to give the final green light to the possibility of using a Month credit line dedicated to the Coronavirus pandemic, such as the signing of a memorandum of understanding by of the beneficiary countries, carrying out a debt sustainability analysis and shorter duration loans than those normally granted by the State savings fund. This is what emerges from a document sent by Hoekstra himself to the Dutch parliament in view of the Eurogroup meeting on Friday, which should give the green light to the characteristics of the Month credit line.
“Some preliminary conditions are important for the Netherlands,” the document reads: “First, as a condition for using the credit line, it must be included in the memorandum of understanding that the countries agree to use to support internal financing of direct and indirect medical care, treatment and prevention-related costs »due to the Coronavorisu pandemic.
The Netherlands then requested that the line of credit be “available only during the Covid-19 crisis” and that the normal procedures provided for by the Month treaty for granting aid “be properly followed.”
In other words, prior to the Month’s board decision on the credit line, the Netherlands requested that analyzes be carried out on risks to financial stability, debt sustainability and financial needs. Finally, the Netherlands believes that the duration of loans based on the line of credit should “be shorter than in previous meseconomic macroeconomic adjustment programs”.
Regarding Director-General Klaus Regling’s proposal to reduce the interest rates generally applied for the Month, the Netherlands believes that “they can be set at a lower level” as long as they are higher than the financial costs incurred for the Month .