Greek bail-out deal reached after marathon talks

A second bail out for Greece was this morning finally agreed by European finance ministers following all-night talks in Brussels.

Under the deal, Greece will be given low-interest loans of £110billion.

Greece will also cut its debts to 120.5% of its Gross Domestic Product by 2020 – it is currently more than 160% of GDP.

Controversially, it will also accept an "enhanced and permanent" presence of EU monitors to oversee economic management.

Without the bail-out money Greece would have been unable to pay back loans next month and would have effectively gone bankrupt.

Such a situation threatened the future of the euro zone itself.


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