Eurozone approves new Greek bailout
Which reduces country's debt by one-fourth:
BELGIUM: Leaders of the 17-member eurozone, alongside the private
sector, have agreed on a new bailout package worth about 159 billion
euros for Greece to stop debt contagion across Europe.
The leaders decided on the new rescue package - which reduces the
country's debt by one-forth - in an emergency summit in Brussels on
Thursday. According to a statement released after the summit, Greece
will receive a bailout package of 109 billion euros from the eurozone
countries and the International Monetary Fund (IMF), in addition to 49.6
billion euros the debt-laden country expects to receive from the private
sector, AFP reported.
Fearing that the economic crisis in Greece might affect other member
countries, eurozone leaders agreed that the country needed an
"exceptional and unique" solution and, as such, voluntary private sector
involvement would be allowed in the eurozone area, but this will be
fully limited to Greece.
Greece was accepted into the Economic and Monetary Union of the
European Union by the European Council on 19 June 2000, based on a
number of criteria using 1999 as the reference year. By the end of 2009,
the Greek economy faced the highest budget deficit and government debt
to GDP ratios in the EU, which together with rising debt levels led to
rising borrowing costs, resulting in a severe economic crisis. Press TV |