Greece secures second bailout deal
21.02.2012
Eurozone finance ministers agreed a deal in the early hours of this morning for a second bailout programme for Greece.
Following 13 hours of discussions in Brussels, the Luxembourg prime minister Jean-Claude Juncker announced the agreement.
He said that up to €130bn until 2014 in loans from Greece's currency partners would be dependent on the successful take-up of a nominal write-down of 53.5pc of privately-held Greek sovereign debt.
The Greek prime minister Lucas Papademos said he was very happy with the bailout deal.
The market responded to the development in a positive way with the euro rising more than one US cent after news of the deal was revealed.
“We expect the unprecedented solidarity of Greece’s partners to be matched by a strong commitment by Greek leaders to fully implement their austerity programme, first and foremost for the benefit of Greek citizens,” said EU Economic Affairs Commissioner Olli Rehn.
“For this to happen, the conditions for investment need to be created and improved – a fairer tax system, an effective public administration, and a more favourable business climate.
“All in all, today’s deal is a key remaining building block of our comprehensive crisis response. With this agreement we have a real chance to turn a corner and move towards sustainable growth and job creation.”
Karina Corbett