Members of the G20 group of nations think it inevitable that Greece will default on its debts, Sky News has learned.
The message comes as global stock markets reacted to the eurozone crisis by staging dramatic falls during the week.
Chancellor George Osborne denied a default was inevitable, but admitted the situation was becoming dangerous.
He told Sky News the global debt crisis had "entered a dangerous phase" but nations had "taken a step towards resolving it".
The question of not if, but when, Greece will default has dominated the summit of finance ministers being held in Washington over the weekend.
According to senior G20 sources, the assumption now is that the country will have to default on its debt by as much as 50%.
This would be on top of the 20% voluntary restructuring that had already been agreed in July.
However, Sky's economics editor Ed Conway said this would be a negotiated default rather than an uncontrolled one.
Mr Osborne spoke in Washington amid meetings of the Group Of 20 developed and developing countries (G20) and the International Monetary Fund and World Bank.
He added: "The countries of the eurozone, who are at the epicentre of this crisis, understand they need to take decisive action and the rest of the world is there ready to help."
Earlier, International Monetary Fund officials said they had been encouraged by the willingness of eurozone governments to do what was necessary to resolve the crisis.
They said the situation remained precarious, but noted a "very clear recognition by ministers of the gravity of the situation we are in".
Source: http://news.sky.com
The message comes as global stock markets reacted to the eurozone crisis by staging dramatic falls during the week.
Chancellor George Osborne denied a default was inevitable, but admitted the situation was becoming dangerous.
He told Sky News the global debt crisis had "entered a dangerous phase" but nations had "taken a step towards resolving it".
The question of not if, but when, Greece will default has dominated the summit of finance ministers being held in Washington over the weekend.
According to senior G20 sources, the assumption now is that the country will have to default on its debt by as much as 50%.
This would be on top of the 20% voluntary restructuring that had already been agreed in July.
However, Sky's economics editor Ed Conway said this would be a negotiated default rather than an uncontrolled one.
Mr Osborne spoke in Washington amid meetings of the Group Of 20 developed and developing countries (G20) and the International Monetary Fund and World Bank.
He added: "The countries of the eurozone, who are at the epicentre of this crisis, understand they need to take decisive action and the rest of the world is there ready to help."
Earlier, International Monetary Fund officials said they had been encouraged by the willingness of eurozone governments to do what was necessary to resolve the crisis.
They said the situation remained precarious, but noted a "very clear recognition by ministers of the gravity of the situation we are in".
Source: http://news.sky.com
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