Eurozone impasse could delay second Greek bailout tranche

Eurozone countries are divided over the terms of Greece's second €109bn bailout, with seven of the bloc's 17 members pushing for private creditors to accept a greater writedown on their Greek bonds, the FT reports.

The economic downturn combined with Greece's slow implementation of austerity measures has bumped up Athens' funding needs over the next three years to well above the €173bn forecast, according to the FT. The split threatens to shake the deal reached with private bondholders in July. Germany and the Netherlands are calling for the private sector to absorb more losses, while France and the European Central Bank oppose such a move. Analysts have raised concerns reopening the bond deal could prompt a sell-off in European bank shares, which have a significant stake in Greek and other p...