Europe Approves 2nd Greek Bailout of $170B

By: Associated Press
By: Associated Press

 (AFP/Getty Images)


BRUSSELS - After more than 12 hours of talks, the countries that use the euro agreed early Tuesday to hand Greece euro130 billion ($170 billion) in further bailout loans to save it from a potentially calamitous default, an EU diplomat said.

The euro surged as the news broke, climbing 0.7 percent to $1.328 in minutes.

The deal — details of which were still being worked out by European finance ministers in an all-night session in Brussels — was expected to bring Greece's debt down to 120.5 percent of GDP by 2020, according to the official. That's around the maximum that the International Monetary Fund and the eurozone considered sustainable. Some eurozone ministers had indicated before the meeting that they would not accept a deal that didn't put Greece's debt on a sustainable path.

The official spoke on condition of anonymity because a formal announcement was pending.

The deal should also give the green light to a related debt relief from private investors, who are expected to take significant losses on Greek bonds they hold.

Greece desperately needs another rescue package if it is to avoid default next month when a euro14.5 billion bond issue comes due.

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  • by Lurking beneath the surface on Feb 21, 2012 at 09:12 AM
    Next they are on to Italy, then Portugal, then Spain to deal with all of their bad debt. The American stock markets are up and people will soon forget why we got into this mess until it rears it's ugly head again when some event upsets the apple cart.
    • reply
      by Anonymous on Feb 22, 2012 at 05:18 PM in reply to Lurking beneath the surface
      and each time it rears it head it will be worse than gold silver food and ammo yet?
  • by Frank on Feb 21, 2012 at 06:35 AM
    100% guarantee: However long it takes for Greece to burn through that $170 billion, they will be back begging for more. They are the classic Cloward/ Piven model. Flood the welfare rolls to the point of cosmic explosion.
    • reply
      by I agree... on Feb 21, 2012 at 07:47 AM in reply to Frank
      This is a classic case of "kicking the can". Sadly, our can kicker in chief is following the same model.
      • reply
        by Anonymous on Feb 22, 2012 at 05:21 PM in reply to I agree...
        and the one before him too
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