Greece Secures New Bailout Deal

(By Martin Murphy|Epoch Times)

BRUSSELS — In the early hours of this morning, finance ministers from eurozone countries managed to secure a new bailout deal (237 billion euro) that should keep Greece in the eurozone.

The deal was brokered in Brussels, between governments, the EU, the IMF and private creditors after what was described by some as a ‘marathon session’ which lasted over 13 hours.

The deal will see private holders of Greek debt encuring losses of 53.5 per cent on the nominal value of their bonds.

According to Reuters “the Greek Prime Minister, Lucas Papademos, pronounced himself ‘very happy’ at the massive bailout agreed by eurozone partners and private creditors.”

In a statement today, Eurozone Vice-President, Mr Olli Rehn described the agreement as “an essential step further for Greece and for the euro area as a whole.”

“It is a far reaching and important agreement … which will substantially reduce the debt burden of Greece and will help to reform the economy and administration so as to return to growth and creating jobs,” said Vice-President Rehn who insisted that the programme is supported by “a very substantial contribution by the private sector.”

According to Vice-President Rehn, among the haircut of 53.5 per cent, several other elements of the agreement will reduce the Greek public debt to the level of 120.5 per cent of GDP by 2020. “In order to reach this level and to ensure that the financing of the official sector is limited to 130 billion euro during the programme period, we needed several hours of negotiations, and that was the main task of tonight obviously,” said Vice-President Rehn.

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Posted by clnews on Feb 21 2012. Filed under News Flash. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry