BBC News
October 22, 2011
The current European Union and International Monetary Fund plan to revive the Greek economy and its finances has failed.
New alarming forecasts of Greece's escalating debt, made by experts working for the so-called "troika" of the European Commission, the European Central Bank and the IMF - and which have been presented to European leaders and finance ministers meeting in Brussels this weekend - cannot be seen in any other way.
The unavoidable implication is that the IMF will not provide any more bailout finance for Greece unless there are much bigger write-offs of Greek government debt by private sectors lenders to the country than the 21% already agreed - which raises the spectre of Greece defaulting on its debt unless banks and investors concede that they will reduce what they're owed by up to 60%.
It means that European leaders face an even more challenging task in coming day to agree a package of rescue measures for the eurozone that would be seen by investors and by non-eurozone countries such as the US and China as sufficiently bold and comprehensive.
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