Here's a summary of the deal announced in the last two hours.
• Eurozone finance ministers have agreed the details of a €130bn financial package for Greece, after 14 hours of negotiations in Brussels.
• The deal, it says, will cut Greece's debt-to-GDP ratio to 120.5% of GDP by 2020, in line with previous targets. This will be achieved by private creditors taking a deeper cut on their existing Greek bonds, of 53.5% of their face value. The European Central Bank will also contribute, by passing the profits from its Greek bondholdings onto the national central banks, who will then pass it onto Greece.
• Greece will now begin negotiations with its private creditors over the terms of the package. It also appears that the Athens parliament plans to pass laws tomorrow to force losses onto bondholders who decline to take part in the 'voluntary' scheme.
http://www.guardian.co.uk/business/2012/feb/20/debt-crisis-euro#block-86
And from AP:
ReplyDeleteThe 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.
http://www.zerohedge.com/news/eurusd-soars-reuters-report-greek-deal-reached-which-same-deal-july-2011