Advertisement

HindustanTimes Mon,21 Apr 2014

Euro zone, IMF secure deal on cutting Greek debt

Reuters  Brussels, November 27, 2012
First Published: 21:25 IST(27/11/2012) | Last Updated: 21:26 IST(27/11/2012)

Euro zone finance ministers and the International Monetary Fund clinched agreement on reducing Greece’s debt on Monday in a breakthrough to release urgently needed loans to keep the near-bankrupt economy afloat.

Advertisement

After 12 hours of talks at their third meeting in as many weeks, Greece’s international lenders agreed on a package of measures to reduce Greek debt by €40 billion, cutting it to 124% of gross domestic product by 2020.

In a significant new pledge, ministers committed to taking further steps to lower Greece’s debt to “significantly below 110%” in 2022.

To reduce the debt pile, they agreed to cut the interest rate on official loans, extend their maturity by 15 years to 30 years, and grant Athens a 10-year interest repayment deferral.

European shares climbed to near a three-week high and safe haven German bonds fell on Tuesday after the deal.

On the currency markets, the euro hit $1.3010, its highest level since October 31 during Asian trading but lost momentum and was 0.3% down at $1.29445 by mid-morning in Europe.

Advertisement
more from Business

700 trainees opt for exit plan at Nokia’s Chennai plant

Finnish handset maker Nokia, struggling to shepherd its Chennai plant into its agreement to be bought by US software giant Microsoft amid tax disputes in India, has got some success with 736 of its trainees accepting the voluntary separation scheme.
markets
Advertisement
Most Popular
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved