Euro-area leaders redoubled efforts to end the 21-monthsovereign bond crisis as they erected a firewall around Spain andItaly and risked temporary default to lighten Greece's debtburden.

After eight hours of talks in Brussels, leaders announced 159billion euros ($229 billion) of new aid for Greece late yesterdayand cajoled bondholders into footing part of the bill. They alsoempowered their 440-billion euro rescue fund to buy debt acrossstressed euro nations after a market rout last week sparked concernthe crisis was spreading. The fund can also aid troubled banks andoffer credit-lines to repel speculators.

Greek, Spanish and Italian bonds rose after officials drewconcessions from Germany, the European Central Bank and investorsfor a twin-track strategy to support Greece and ensure its woesdon't spread. The summit is the latest in a running-battle toresolve the crisis amid calls this week for tougher action fromU.S. President Barack Obama and the International MonetaryFund.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.