By Max Clarke
A €109 billion rescue package has been agreed for Greece. The deal also ensures that other countries to receive bailouts will now face more favourable conditions of their existing debts.
Financial markets have risen after the decisive bailout following prolonged uncertainty in the Eurozone. Had the deal not been reached, the risk of the financial contagion spreading to other, more powerful economies of Italy and Spain would have sent shockwaves through global financial markets. Today’s deal has allayed fears of further collapse, triggering a tentative return to traders’ confidence.
Most of the sum will come from the IMF and Eurozone members, though private institutions are being implored to contribute voluntarily by relaxing conditions on existing bonds.
Pressure on the Euro remains, though talks of its demise may be premature, due to the combined political will of its member states to ensure it survival.
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