Europe must implement debt deal quickly: Treasury

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Europe must implement debt deal quickly: Treasury
WASHINGTON (MarketWatch) - Europe must move "quickly and firmly" to implement any agreement to solve the euro-zone crisis, said Charles Collyns, Treasury assistant secretary for international finance on Tuesday. European leaders will gather Wednesday for a second summit meeting in four days in an effort to agree on a wide-ranging set of measures designed to contain the crisis. In testimony prepared for a House Financial Services subcommittee on international matters, Collyns said that the European officials have a framework for an agreement which is to be "finalized" on Wednesday. But experts on both sides of the Atlantic are worried that the leaked details of the agreement fall short of solving the crisis. For instance, there have been reports that the plan calls for European banks to raise reserves by 100 billion euros. Analysts said this will not calm investor fears over the health of the European financial sector. The Financial Times also reported that negotiators have asked bondholders to take 60% haircuts on the face value of Greek bond holdings. But experts said it remains to be seen whether Greece's creditors will accept such a large write-down.