The finance ministers of the world抯 20 biggest economies are meeting in
Paris to try to resolve the European debt crisis that is threatening to push
world economies into another recession.
The financial chiefs meeting Friday and Saturday are expected to consider
several options that some leaders say could help stabilize the global financial
markets and ease the debts of financially troubled Greece.
Some leaders have suggested that Greece抯 debts need to be substantially
cut, effectively a default on its obligations. That could force investors
holding Greek debt to assume much bigger losses than the 21 percent figure they
already agreed to in approving a second Greek bailout in July, possibly to as
much as 60 percent.
European leaders are pressing the continent's banks to sharply increase
their cash reserves to cover possible losses on the debt they hold from Greece
and other countries faced with burgeoning debt. Some think the lending capacity
of the International Monetary Fund should be increased.