Leaders agree on euro bailout package
The deal that will go some way to resolving uncertainty on how the European sovereignty debt crisis is resolved.
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European leaders have agreed to a deal that will go some way to resolving uncertainty on how the sovereignty debt crisis is resolved.
It will reduce Greece's debt and follows all-night negotiations on key elements of a bailout package.
French President Nicolas Sarkozy said the leaders had agreed with private banks on a "voluntary" 50% reduction of Greece's debt in the hands of private investors.
He also said the European Financial Stability Facility would be boosted four- or five-fold, suggesting it could provide guarantees for €800 billion to €1.3 trillion of bonds issued by countries such as Spain and Italy.
The leaders also agreed on a plan that would boost the capital buffers of the stragglers among Europe's 70 biggest banks by €106 billion.
But the deal comes with a caveat – earlier summits have reached ostensible agreement among the leaders but negotiating the details of such agreements may take weeks.
Nevil Gibson
Thu, 27 Oct 2011
Thu, 27 Oct 2011
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Leaders agree on euro bailout package
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