Rehn confirms drachma clause issue settled

The office of the European Union’s Economic and Monetary Affairs Commissioner Olli Rehn confirmed on Friday in a statement to Kathimerini that the issue concerning the insertion of drachma clauses by the European Investment Bank (EIB) into loans to Greek companies has been settled, as this newspaper reported earlier this week, but added that the official had been misquoted.

Responding to the Kathimerini report, which suggested that Rehn had intervened for the revocation of the clauses and had branded the move by the EIB as «unfortunate and incomprehensible,» the Finnish commissioner’s office said yesterday that he «has been misquoted.”

“Contracts of the EIB are technical matters but, in his discussions with EIB President Hoyer, [he] has been informed that the EIB is following normal banking practices and that the issue referred to in the press is settled,» the commissioner’s office said.

It added that Rehn «noted that the EIB is committed to continued support for Greece.”

A Kathimerini report had revealed last week that the EIB had insisted on inserting drachma clauses in its loan agreement with Greek power giant Public Power Corporation. Greece’s European Commissioner Maria Damanaki asked Rehn to intervene, according to sources.