Eurozone officials continue to hammer away at a Eurozone rescue plan rumored to be in the range of 2 trillion euros ($2.7tn). The plan also calls for a 50 percent write-down in Greece’s debt that will force investors to accept less as Greek debt matures.
Stock markets have seen deep losses during the past two weeks and Eurozone officials have been accused of reacting too slowly to the deteriorating outlook for Greece and other indebted nations in the Eurozone. The greatest concern should one of these countries default – and most are focused on Greece at this time – is the damage this could do to the European banking system as most of the larger financial institutions are heavily exposed to sovereign debt.
Source: BBC News
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