Bloomberg News

EU Talks With Banks on Greek Bond Losses Said to Be Deadlocked

November 01, 2011

Oct. 26 (Bloomberg) -- European Union talks with banks on bondholder losses as part of a second Greek rescue package are deadlocked and have been suspended, an EU official said.

The EU is seeking voluntary participation by banks in a second bailout package for Greece, though a forced solution can’t be ruled out, the official said in Brussels today on condition of anonymity because the talks are private.

The dispute centers on how much of the risk of any newly issued bonds should be insured, the official said.

At a summit in Brussels later today, EU leaders will try to determine the outlines of what needs to be achieved to prevent Greece defaulting and return it to a sustainable debt load, the official said.

That may involve the EU setting specific limits on its own and International Monetary Fund participation in the second bailout, the official said.

--Editors: John Fraher, James Hertling

To contact the reporter on this story: Patrick Henry in Brussels at

To contact the editor responsible for this story: Craig Stirling at

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