The European Commission, the European Central Bank and the International Monetary Fund proposed a restructuring of Greek debt that would require public-sector lenders to take heavy losses, Spiegel reported.

Representatives from the so-called troika presented their plan at a meeting of high-level officials from euro-area finance ministries on Oct. 25, according to an article in this week’s Spiegel magazine, which didn’t say where it got the information.

This would be the first time euro aid would cost taxpayers “serious money,” Spiegel said. Public creditors to Greece would be expected to participate and to relinquish a large part of their claims, it said.

European policy makers are awaiting the final report, due by Nov. 12, on Greece’s progress in meeting internationally agreed targets compiled by the troika.

The Frankfurt-based ECB, which owns 40 billion euros of Greek government bonds, isn’t allowed to take part in the restructuring. Instead, the central bank would “make available” any profit it makes on the bonds, Spiegel said.

Greece has only completed about 60 percent of the required changes, the troika’s presentation showed, according to Spiegel. The Greek government is discussing 20 percent of the revamp, and the remaining 20 percent hasn’t been addressed.

The troika recommended measures to force Greece to fulfill promises, including a provision to automatically raise taxes if reforms aren’t completed. Greece will be given two more years to get its budget on track, Spiegel reported.

Representatives from some countries, including Germany, opposed the proposal, Spiegel said.

German Finance Minister Wolfgang Schaeuble, in a radio interview with Deutschlandfunk broadcast on Sunday, rejected another debt restructuring and said it’s unrealistic to expect public or private bondholders to take losses on their Greek holdings.

[Bloomberg]