September 23, 2011
Greece insisted last night that it remained committed to the terms of its €110bn (£96bn) bailout despite fears of the scale of losses banks face if it defaults on its debts.
After the finance minister, Evangelos Venizelos, told politicians he saw three solutions to the debt crisis, including writing off 50% of the value of Greece's debt, officials moved to play down expectations of any imminent decisions.
Greece is the first eurozone country to seek a bailout. Calculations about the impact of a break-up of the eurozone put the losses for core European banks at €300bn, €630bn to peripheral banks and €150bn to the European Central Bank.
Analysts at Credit Suisse concluded: "We think the chance of a general break-up of the euro is just 10%: the cost of not bailing out the peripheral countries is higher than the cost of bailing out."
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