Europe seals new bailout to help Greece avert default

Published by NewsNow Online on Feb 21st, 2012 9:17 AM, No Comments

Europe seals new bailout to help Greece avert default

**Greece secured its second major save on Tuesday as European finance leaders sealed a €130-billion bailout agreement to prevent a radical 14.5-billion bond default in March, Reuters reported.**

After 13 hours of talks, ministers approved measures to cut Greece’s debt to 120.5 percent of gross domestic product by 2020, a fraction above the target, to harness the country’s second rescue in less than two years and meet a bond repayment next month.

According to The New York Times, Greece will pay lower interest rates on its bailout loans, while the European Central Bank will distribute its profits from bond buying and private investors in Greek debt will suffer more losses than originally anticipated in order to revive the Greece’s flailing economy.