ECB may take haircut on Greek bonds

The European Central Bank (ECB) could face extended losses as it prepares a last-ditch attempt to prevent a Greek exit from the eurozone.

According to Telegraph reports, discussions are being held among European Union policymakers over plans for the ECB and a number of central banks to take hefty write-downs on their Greek bonds in order to prevent a eurozone break-up. France's central bank, the most heavily exposed to Greek debt, could face recapitalisation over the scale of potential losses. Meanwhile, Malta and Cyprus' central banks as well as clearing banks and eurozone governments are all in the firing line as well. The proposed rescue package will slash Greece's debts by another €70bn to €100bn. However, the detai...