According to the AP finance ministers from the 17 eurozone countries agreed Friday to pay Greece its next batch of bailout loans, avoiding a potentially disastrous default, but acknowledged the country's debt remained too high.
Greece's debts are only one piece of Europe's economic puzzle, and the ministers were meeting in Brussels to address two more complicated - and arguably more important - issues: boosting the financial firepower of the eurozone's $607 billion bailout fund to keep the larger economies of Italy and Spain from spinning out of control and forcing weak banks to boost their capital buffers as a defense against market turmoil.
The loans, which still need the approval of the International Monetary Fund, should be delivered during the first half of November. The money will keep Greece afloat for a little longer, but most economists agree that the country also needs a substantial cut to its debt load. The finance ministers said they were looking at ways to do that, including imposing bigger losses on the banks that hold Greek bonds…
Read more at http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/10/21/MNC11LKP5J.DTL
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