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Eurozone officials will hold another meeting Nov. 20 to hash out a compromise, which must come before Greece gets its next batch of loans. French Finance Minister Pierre Moscovici said they would hand Greece its next loan installment, worth
euro31.5 billion ($40 billion), by the end of the month. The meeting did agree to give Greece until 2016 -- that is, two more years
-- to make the reforms necessary to right its economy and begin reducing its debts. But Greece's creditors still have to decide how they will pay for the extension; officials have said it will cost about
euro30 billion extra through 2016. German Finance Minister Wolfgang Schaeuble said Tuesday morning that Greece's lenders wouldn't necessarily have to fork over more cash to plug the hole. He suggested that it could be filled by lowering the interest rates of the loans. He ruled out, however, asking eurozone countries to accept losses on their loans
-- as some have suggested might be necessary to reduce Greece's debt burden. Greece has had to raise money from financial markets to be able to repay
euro5 billion in bonds maturing Friday. It managed to get euro4.06 billion from the sale of short-term bills on Tuesday. It will accept more bids until Thursday, by which time it expects to have gathered enough to afford Friday's bond repayment.
On Monday, eurozone finance ministers also discussed the plan to restore the capital levels of Spanish banks, saying it was proceeding well. On Tuesday, Luis De Guindos, the Spanish economy minister, echoed that analysis. "In early December, we will do the recapitalization of Spanish bank system and everything goes as we established," he said. He added that the so-called "bad bank," a fund that would buy up soured investments from banks at a discount, would be established Dec. 1. The hope is that Spanish banks will lend more once those bad investments are no longer on their books.
[Associated
Press;
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