IMF, EU agree on Greece debt reduction plan
2012-11-27 12:05:55
The Eurozone and the International Monetary Fund reached agreement on a new bailout program for financially strapped Greece.
The EU and IMF said Greece's sovereign long-term debt would be reduced by 40 billion euros or 124 percent of gross domestic product by the year 2020.
The agreement came late Monday after almost 10 hours of negotiations. Details of the package were announced at a news conference in Brussels.
The reduction would take place through a series of steps, and is expected to clear the way for Greece to receive up to 44 billion euros in bailout funding to keep struggling banks solvent and pay government workers.
To reduce the Greek debt, the finance ministers agreed to cut interest rates on loans to Greece and return profits made on European Central Bank purchases of Greek government bonds.
The finance ministers also agreed to assist Greece in buying back its own bonds from private investors.
At the news conference, the European Commissioner for Monetary Affairs, Olli Rehn, commented that Greece "has shown that it is serious about reform