MW: ECB eyes 'last chance' bid to keep Greece in euro
By Barbara Kollmeyer
MADRID (MarketWatch) -- The European Central Bank and national central banks may be willing to take a haircut on the value of their Greek bond holdings in a bid to try and keep Greece in the euro zone and lower its debts, senior euro-zone officials told Reuters on Friday. The latest attempt is a "last chance" to come up with some options to cut Greek debts by an extra €70 to €100 billion, bring them to 100% of annual economic output. The officials familiar with the discussions said a favored route is for the ECB to bear the cost of any haircut, but that may involve some banks and Europe's central bank itself needing recapitalization. Officials said planning is in the early stages and no formal discussions have been held. One of the options involves a 30% haircut on those bondholdings.
