CCTV9英语新闻:Possible selection default of Greek debt

The euro zone has acknowledged for the first time, that some form of Greek default may be needed to cut the country's debts. But markets seized on the lack of a deadline for action and lukewarm response from the IMF to heap pressure on Italy and Spain.

Those attending the finance ministers' meeting say both a buy-back of Greek debt on the secondary market, and a German proposal for a bond swap for longer maturities are under consideration. But they add, both options would likely be regarded by rating agencies as a default, or at best a selective default.

The Dutch Finance Minister says finance ministers have effectively accepted that if they want to have the private sector involved in a second bailout of Greece, a selective debt default is likely.

Jan Kees de Jager, Dutch Finance Minister, said, "We have managed to break the knot, the very difficult knot of a contradictory statement on the one hand that you are saying that you want substantial private sector involvement and on the other hand you want at all times to avoid selective default. Obviously this was a contradiction. We have broken that knot and now we can do the work."