July 18, 2011
European government officials and commercial bankers struggled to reconcile competing proposals for a second bailout of Greece Monday, just three days before a summit meeting called to prevent the crisis from spreading through the region.
French government spokeswoman Valerie Pecresse said she believed the summit of the euro zone's 17 national leaders scheduled for Thursday in Brussels would agree on a rescue of Greece, supplementing a 110 billion euro ($154 billion) bailout launched in May last year.
But after three weeks of preparatory talks, it was unclear how a consensus could be reached on a way for private owners of Greek government bonds -- banks, insurers and other investors -- to contribute to the bailout by taking cuts in the face value of their holdings.
Imposing a small tax on all euro area banks is under active consideration as a possible alternative to more risky forms of private sector involvement, a source familiar with the talks said, confirming a German media report.
The source also said officials were considering measures to try to prevent the fallout from the Greek crisis from damaging financial markets globally.
More
No comments:
Post a Comment