Ligi: total bailout obligation as likely as meteorite striking Toompea03.10.2012, 13:10
When being grilled by opposition MPs yesterday in the parliament, finance minister Jürgen Ligi first admitted in public that Estonia’s maximum theoretical obligation to European bailout funds was 2.3 billion euros, writes Postimees.
However, the finance minister added that the likelihood that Estonian would be forced to pay its maximum obligation to the bailout fund was as high as a meteorite striking Toompea Castle at the time when the parliament was in session.
On a more humorous note, Ligi also responded to claims that Greece which had applied for another bailout payment is actually planning to use part of the money – about EUR 30m – to build a motorracing track.
“I will not approve anything for motorsports. This is my personal view. I know that I am now insulting the feelings of millions of Estonian motofans, but I think that this is barbaric sports,” said Ligi.
The parliament yesterday agreed to increase the total amount of the EMS bailout fund to 700 billion euros and confirmed that Estonia was ready to make its second payment to ESM in October.
The decision was necessary because the MPs had approved the first instalment when they were adopting the draft budget for 2012, but the need for second instalment occurred only this year.
In August, the parliament adopted the decision to ratify ESM, shortly after the Supreme Court had ruled with a narrow margin that ESM’s foundation agreement was in line with the Estonian Constitution.
The decision to increase the bailout fund to 700 billion euros and make the second instalment this month was adopted yesterday with 52 votes in favour and 27 against.
As expected, the yesterday’s decision was opposed by Centre Party MPs and MPs who this year left the Centre Party parliamentary faction.
Centre Party MPs said that they cannot agree to a decision which obliges Estonia to pay 30 million euros to the bailout fund.
Altogether, Estonia will pay 150 million euros to the bailout fund, including 60 million this year, 60 million next year and 30 million in 2014.