EU, banks near deal on Greece | india | Hindustan Times
Today in New Delhi, India
Jul 23, 2017-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

EU, banks near deal on Greece

Negotiators from the European Union and banks are “relatively close” to a deal to write off around half of Greece’s €350-billion debt pile, an EU official said on Monday.

india Updated: Oct 24, 2011 21:49 IST

Negotiators from the European Union and banks are “relatively close” to a deal to write off around half of Greece’s €350-billion debt pile, an EU official said on Monday.


“We’re relatively close to a deal,” said EU economic affairs commissioner Olli Rehn’s spokesman, Amadeu Altafaj.

The EU’s “preference” was “for a voluntary approach,” Altafaj said, but batted away questions on the so-called “haircut” of “at least 50%” sought by eurozone finance ministers.

The EU has asked banks to agree to a 60% write-down, but banks are so far sticking to their offer of a 40% cut, a source said.

Greek stocks plunged more than 5% in late morning trade, led by falls in the banking sector.

Greek banks hold about €44 billion in sovereign debt bonds, and pension funds another €8 billion.