Euro Debt Deal Highlights

A leaked report from the emergency meeting in Brussels today to formulate a plan to prevent the debt crisis spreading to other countries suggests the following items have been agreed upon:

  • European banks must raise more than 100bn euros (£87bn) in new capital to shield them against possible losses to indebted countries
  • The European Financial Stability Facility (EFSF) – the single currency’s 440bn-euro bailout fund – will be given more firepower, although it is not clear how this will be achieved
  • Lenders to Greece will be asked to agree to much deeper losses than the 21% write-off currently on the table

Source: BBC News

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