Michael Gottschalk, AP Photo/dapd
German Chancellor Angela Merkel reacts during a debate at the German federal parliament, Bundestag, in Berlin, Germany, Wednesday, Oct. 26, 2011. Merkel is calling for the private sector to make a significantly larger contribution than previously agreed to reduce Greece's debt burden. Merkel said the aim of a European summit Wednesday must be a solution that allows for Greece to cut its debt load to 120 percent of gross domestic product by 2020.
BRUSSELS — A European Union official says the currency union's leaders have reached a deal with banks to take losses of 50 percent of their Greek bonds in a key move to solve the eurozone's debt crisis.
The official was speaking early Thursday morning on condition of anonymity pending an official statement.
A second official confirmed that there was a voluntary deal.