BBC News
June 27, 2011
The Greek financial crisis is now moving quickly - with confirmation from President Sarkozy today that his officials have struck a deal with the French banks who hold maturing Greek debt.
The message is that if - and it is still a big if - the Greek government is able to pass that austerity package in the next few days, the eurozone will fulfil its side of the deal by coming up with a structure for a second Greek bailout, which Germany and everyone else can support.
But plenty can still go wrong, and even if it doesn't, the eurozone will have wasted an enormous amount of time on a relatively small piece of the puzzle.
The deal with the French banks, leaked to French newspapers on Sunday, would mean French banks only walking away with 30% of the proceeds from the Greek debt coming due between now and 2013.
Half would be reinvested in 30-year Greek government debt, with the remaining 20% put into triple A securities as a form of guarantee against losses on the Greek debt.
Officials have apparently dubbed this a "Brady bond but entirely private".
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