The latest loan write-offs will be reported later this month when it issues earnings for the third quarter, the company said.

The fund also recommended injecting capital into commercial banks in preparation for loan write-offs.

He added that "without some changes, the banks in this area would face huge loan write-offs" in coming months.

As the bankruptcies roll in and loan write-offs grow, it will change even more.

The plan would also allow troubled thrift units to avoid some losses in loan write-offs.

The agency said the banks had failed to meet their earnings goals even after their bad- loan write-offs.

The fund does not pressure banks to swallow loan write-offs against their wishes, but this time something like that could happen.

The two parties are trying to agree loan write-offs of about 50% to help Greece slash its high debt levels.

The talks stalled last Friday as the two sides failed to reach agreement on loan write-offs of about 50%.

To raise cash to pay for more loan write-offs, the banks are cutting their work forces and closing hundreds of branches.