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EU official: banks to take 50pct cut on Greek debt

By Gabriele Steinhauser

Associated Press

Published: Wednesday, Oct. 26 2011 7:30 p.m. MDT

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.

Michael Gottschalk, AP Photo/dapd

Enlarge photo»

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.

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