Greece Wins Second Bailout

Europe provides $173 bln in aid, wrings concessions from private investors.

Debt-stricken Greece won a second bailout after European governments wrung concessions from private investors and tapped into European Central Bank profits to shield the euro area from a precedent-setting default.

Finance ministers awarded 130 billion euros ($173 billion) in aid, engineered a central-bank profits transfer and coaxed investors into providing more debt relief in an exchange meant to tide Greece past a March bond repayment. Stocks fell and the euro fluctuated as investors speculated the deal won’t fix Greece’s long-term challenges.

Fiscal Emergencies

Luxembourg Prime Minister Jean-Claude Juncker, chairman of the overnight talks, predicted that a March 1-2 summit will deliver a “significant reinforcement of the euro-area firewall.” Germany, Europe’s dominant economy, has eased its opposition to raising the aid ceiling, which will be a topic in Mexico City this weekend when Group of 20 finance chiefs meet.

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