Eurozone leaders may boost bailout fund in October

PanARMENIAN.Net - Eurozone leaders will likely boost the firepower of their bailout fund at a summit later this month, Belgium's finance minister said Tuesday, October 4, as a push to impose larger losses on Greece's private creditors appeared to be gaining more steam, the Associated Press reported.

Both moves form part of a broader overhaul of the currency union's crisis strategy as it becomes obvious that Greece will not be able to repay its massive debts - some 160 percent of economic output - in full, despite billions of euros on rescue loans.

But before the eurozone can take more stringent measures on Greece, they have to build up safety nets for weak banks and other struggling economies, such as Italy and Spain.

The slow progress on solving the crisis, which has dragged on for almost two years, is weighing on global markets and investors continued to sell off shares and the euro after ministers late Monday delayed a decision on paying out a crucial aid installment until the end of the month.