Nicolas Sarkozy
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Eurozone leaders agree debt deal in Brussels

Eurozone leaders have reached an agreement which they say is vital to resolving the region's massive debt crisis, after marathon talks in Brussels.

The deal will see private banks holding Greek debt accepting a loss of 50%. Banks must also raise more capital to protect them against losses resulting from any future government defaults. The eurozone's main bailout fund will also be boosted to 1tn euros (£880bn; $1.4tn).

The framework for the new fund is to be put in place in November.

Chris Morris reports.

  • 27 Oct 2011