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
