BRUSSELS – The European Union reached a landmark deal on Thursday to make the European Central Bank the bloc’s top banking supervisor, giving EU leaders greater confidence that they are gaining the upper hand over the eurozone’s debt crisis.
EU finance ministers forged a deal on the single supervisor in the early hours of Thursday after marathon talks. Leaders will give their stamp of approval at a summit starting later in the day, their last of 2012, and also discuss closer fiscal ties for their troubled currency area.
The eurozone sealed a grand deal to overcome its festering debt crisis Thursday when banks agreed to take a 50 percent loss on Greek debt, officials said.Eurozone officials announced the deal following tough talks in Brussels between leaders of the eurozone and the Institute of International Finance banking lobby to force the private sector to share the pain of Greece's debt burden.The agreement was the last and perhaps toughest chapter to negotiate in a wide-ranging four-point plan to find a lasting solution to Europe's festering debt crisis.
The devil lies in the detail of Cyprus’s salvation.
The island nation’s rescue sets precedents for the eurozone that may stick in the memory of depositors and bondholders alike as investors debate who will next fall victim to the debt crisis. Under the terms of the agreement struck early this morning in Brussels, senior Cypriot bank bond holders will take losses and uninsured depositors will be largely wiped out.
The European sovereign debt crisis is slowly driving the global economy back into the ditch. Why is this crisis so unresolvable? The answer comes back once again to excess risk taking and leverage in the banking sector. In late October, Europe's leaders finally persuaded the banks to take a 50% cut on the Greek debt they hold, although this agreement could be jeopardized by Greece's recent call for a referendum on its bailout package.
BRUSSELS — Eurozone finance ministers and the International Monetary Fund clinched agreement on a new debt target for Greece on Monday in a significant step towards releasing another tranche of loans to the near-bankrupt economy, officials said.
After nearly 10 hours of wrangling at their third meeting on the issue in as many weeks, Greece’s international lenders agreed to reduce Greek debt by 40 billion euros to 124% of gross domestic product by 2020 through a package of steps.
Oil prices rebounded slightly on Wednesday, a day after financial markets were rocked by sharp losses, as traders awaited the latest weekly snapshot of US crude inventories.New York's main contract, West Texas Intermediate (WTI) crude for delivery in May, rose 69 cents to $101.71 a barrel.Brent North Sea crude for May climbed 21 cents to $120.09.Brent had slumped $2.79 a barrel and WTI shed $1.44 on Tuesday as traders fretted over weak economic data in China and the United States, as well as resurgent concerns over the eurozone debt crisis, traders said.