Investors in Greece Face Bigger Losses

EU hints at larger bondholder role in euro-zone’s bailout of Greece.

European governments dropped clues that bondholders may have to take bigger losses on Greek debt in a second aid package, as Greece’s deteriorating economic outlook forces bolder steps to quell the fiscal crisis.

Finance ministers considered reshaping a July deal that foresaw investors contributing 50 billion euros ($66 billion) to a 159-billion euro rescue. That private sector involvement, or PSI, includes debt exchanges and rollovers.

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