EU finds ways to save banks from writing down defaulted Greek debt, says FT

The Financial Times reported on Monday that European Union officials have found two possible loopholes that would save European banks from having to mark down their Greek government bonds in the event of a restructuring. According to the article, national regulators can provide guidance on what constitutes a default. In addition, regulators can use a definition of default - the article does not say where it is found - which defines it as a 90-day failure to pay.

The article quotes an unnamed regulatory expert as saying that "a properly restructured reprofiling could leave bank regulatory capital levels unaffected".