This should have been done a long time ago but at least they're finally doing it. The larger issue now is remembering that Greece is a problem, but only a very small part of the problem. A lot of banks are going to need to eat a lot of losses if anyone wants to make an attempt at getting past this financial mess.
The eurozone's 17 finance ministers have agreed that banks must accept substantially bigger losses on their Greek bonds, and a new report suggests that writedowns of up to 60 percent may be necessary.
The report from Greece's international debt inspectors, which was discussed at the finance ministers' meeting Friday, says in order to keep a second international bailout of Greece to the euro109 billion ($150 billion) level tentatively agreed upon in July, Greece's debt would have to be cut 60 percent.
Even that would leave the country's debts at 110 percent of economic output in 2020.
