Split opens over Greek bail-out terms

Article reported that a split had opened in the eurozone in late September 2011 over the terms of Greece’s second €109bn bail-out with as many as seven of the eurozone's 17 members arguing for private creditors to swallow a bigger writedown on their Greek bond holdings.

The divisions had emerged amid mounting concerns that Athens’ funding needs were much bigger than estimated in July 2011. They threatened to unpick a painfully negotiated deal reached with private sector bond holders in July.

ESO: Background information: Pressure mounts on Europe to boost rescue fund / Debt talks fail to agree solution http://www.europeansources.info/record/pressure-mounts-on-europe-to-boost-rescue-fund-debt-talks-fail-to-agree-solution/

ESO: Background information: Greece set to pass fresh austerity measures http://www.europeansources.info/record/greece-set-to-pass-fresh-austerity-measures/

ESO: Background information: Meeting of Heads of State or Government of the Euro area, Brussels, 21 July 2011: EU leaders agree €109bn Greek bail-out http://www.europeansources.info/record/meeting-of-heads-of-state-or-government-of-the-euro-area-brussels-21-july-2011-eu-leaders-agree-e109bn-greek-bail-out/

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