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Many banks are extending loan terms, hoping that the problem will go away.
A two-year extension would require around €20bn of funding (perhaps through extending loan repayments, or extra short-term borrowing).
And other, less drastic options like reducing interest rates and extending loan maturities are also being considered.
With EU member states almost certain to rule out outright debt forgiveness, extending loan maturities and grace periods are likely to be pivotal to a deal.
Options included cutting the loans' interest rates and extending loan maturities, as well as helping the countries buy back their bonds trading in the market.
The euro zone is also weighing measures — like extending loan maturities and paring interest rates — that would further ease the country's financial burden.
Similar(43)
We are extending loans for the cost of tuition to the majority of part-time students.
Since the end of the 20th century, more financial institutions have begun extending loans for business and real-estate development.
In many cases banks simply keep on extending loans to firms that have no hope of repaying them.
Investment bankers are able to finance their customers without extending loans that tie up large amounts of capital.
"They are making more money from being a lousy credit than from extending loans to good credits".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com