Growing debt problems and threats of possible recession have prompted European finance managers to come up with a scheme that could finally resolve the problems of Greece and enhance the European Financial Stability Facility (EFSF).

The so-called five-point plan is also envisioned to infuse additional capital for banking institutions and improve competitiveness as well as consideration of European treaty amendments that will strengthen management of the regional economy.

Euro leaders are meeting on Oct. 23 in Brussels and a major part of this assembly would be devoted to discussions in "saving" the Euro currency.

Previous statistics from Thomson-Reuters reported by the San Francisco Chronicle presented the 2012 government debt forecast of the European Commission for several nations which are as follows:

Belgium - 97%

Italy - 120.3 %

Spain - 68.1

Portugal - 101.7%

Ireland - 112%

Greece - 157.7%

Some proposals include the amendment of a voluntary July agreement forged with investors for a "21 percent net-present-value reduction in Greek debt holdings. Another alternative is a decrease of up to 50 percent while a third offer is for investors to exchange Greek bonds for new debt at a lower face value collateralized by the Euro area's AAA-rated rescue fund," according to the SF Chronicle report.

Meanwhile, the Bloomberg reported that Josef Ackermann, chief executive of Deutsche Bank AG and principal negotiator for the world's biggest financial companies, has pressured European leaders for months to develop a strategy that would eliminate the sovereign debt crisis.

Ackerman is expected to fly to Belgium and meet with EU policy makers regarding the Greek debt holdings and mandatory recapitalization of lenders.

However, Ackerman stated that resistance from banks may impede efforts of top Euro leaders like German Chancellor Angela Merkel and French President Nicolas Sarkozy to present a solution during the summit to tackle the crisis

This crisis has pushed Greece toward default, adversely affected global markets and jeopardized the survival of the 17- nation currency.

Economic observers believe that arriving at a compromise is in the interest of banks, whose earnings have been battered by financial-market turbulence

In a declaration several days ago, The European Banking Federation, said "recapitalization is not central to the solution and the region's lenders have continued to place trust in sovereign debt and made credit available to national governments throughout the crisis," a Business Week report cited.