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Default piles pressure on Greek banks, other borrowers

Athens now says it is willing to accept many of the bailout terms if they are part of a broader deal addressing Greece's funding needs for the next two years

Published Wed, Jul 1, 2015 · 09:50 PM

Greece

London

GREECE'S widely expected 1.55 billion euro default on an International Monetary Fund (IMF) loan raises the pressure on its banks and other borrowers.

Analysts say the collateral of banks and borrowers is likely to receive a "haircut", that is, the value of the collateral against the borrowings will be downgraded. The implication is that stressed banks and other corporate borrowers will have less scope to borrow money from the European Central bank (ECB) and other lenders.