Eurozone leaders clash with banks over Greek debt deal

Leading banks are at odds with European policymakers after lenders offered to take a haircut of 40% on their Greek bonds, but leaders said the proposals do not go far enough.

The offer – an increase on the banks' previous proposal to bear a 21% loss - could determine the success of a crucial European summit on Wednesday, the Telegraph reports. The International Monetary Fund is thought to be calling for a 60% haircut, while Europe's leaders want at least 50%, but bankers have warned anything over 40% risks setting off a 'credit event', triggering credit default swaps. Eurozone leaders met in Brussels over the weekend, but have been unable to agree a concrete plan to solve the sovereign debt crisis. Politicians have all but finalised a €100bn (£90bn) bai...