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HindustanTimes Wed,01 Oct 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.

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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.


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