Finance ministers from the 27 European union countries in Brussels have been holding further talks in Brussels.
They have agreed that private holders of Greek debt may need to accept losses of up to 60 per cent on their investments, if Greece’s growing mountain of debt is to be made more sustainable in the long term.
Jean-Claude Juncker, the chairman of the eurogroup, said: “We plan to negotiate with the private sector, it’s not useful to publish the targeted goal of these negotiations right now. But everybody knows that this area is the one we are going to fix.”
International Monetary Fund, The European Commission and the European Central Bank — the so-called troika — issued a gloomy report on Greece’s ability to pay it’s debts.
On Friday Eurozone finance ministers agreed to approve an eight billion euro loan that Athens needs to pay its bills.
The IMF still needs to sign off on its share of the bailout but sources suggest boss Christine Lagarde is in agreement.
This third bailout package for Greece has caused divisions between Germany and France.
Euronews reporter, Rudolf Herbert added: “The marathon summit continues. There is a very heavy burden on the shoulders of finance ministers, especially on those of the euro zone. No question debated here is uncontroversial. Yesterday, they were able to get over the first hurdle.”