12 Jul 2011

Eurozone ministers discuss Greece rescue package

2:03 pm on 12 July 2011

Eurozone finance ministers are meeting to discuss how to organise a second financial rescue package for Greece.

Germany wants private creditors, like banks and insurance companies, to contribute to the bailout by swapping their existing Greek bonds for longer term debt.

That would be classed as default and had previously been opposed by the European Central Bank.

Greece's current bail-out funds, agreed last year, total €110 billion but the government requires more funds to prevent it defaulting on its debt payments in the future, the BBC reports.

The talks come amid growing concerns that Italy may be the next eurozone country to require a European Union led bail-out.

Ahead of the meeting, German Chancellor Angela Merkel tried to ease concerns, saying she was sure Italy would pass an austerity budget.