Second Greece bailout secured

Politics - 21 February 2012, Tuesday 13:52

GREECE (QHA) - Finance ministers of eurozone have agreed a second bailout for Greece after talks in Brussels, RTE News disclosed.
Eurozone officials said ministers had finalized measures to cut Greece's debt to 120.5% of gross domestic product by 2020.
That is a fraction above their original target of 120%, after negotiators for private bondholders accepted bigger losses to help plug the funding gap.
Agreement on the €130bn rescue package, subject to strict conditions, will help draw a line under months of uncertainty that has shaken the eurozone, and avert an imminent Greek bankruptcy.
"We have reached a far reaching agreement on Greece's new programme and private sector involvement that would lead to a significant debt reduction for Greece," said Head of the Eurogroup of finance ministers Jean Claude Juncker.
The deal will enable Greece to launch a bond swap with private investors to help reduce and restructure its vast debts, put it on a more stable financial footing and keep it inside the 17-country eurozone.
Around €100bn of debt will be written off as banks and insurers swap bonds they hold for longer-dated securities that pay a lower coupon, although it is not clear how many will take the deal.
 
QHA