breaking: Eurozone approves new $173B bailout for Greece
(CNN) -- Eurozone finance ministers sealed a deal Tuesday morning for a second bailout for Greece, including €130 billion ($173 billion) in new financing.
The finance ministers from the 17 nations that use the euro, known as the Eurogroup, gave Greece funding it needs to avoid a potential default next month.While this new deal provides some short-term relief for Greece, difficult days lie ahead as the government tries to trim debt to 121% of the country's gross domestic product by 2020. Greece's debt now stands at about 160% of GDP.
The announcement came at an early morning press conference in Brussels after a marathon meeting of more than 13 hours. "It's clear that the Greek economy cannot (continue to be) financed by cheap debt, but needs to lean on new investment both Greek and foreign," said Olli Rehn, vice president of the European Commission.
"This should give Greece enough space to improve its competitiveness," added Christine Legarde, managing director of the International Monetary Fund, adding that the goal of the terms of the new bailout is to create growth for the Greek economy. "There are downside risks, that is clear."
http://www.cnn.com/2012/02/20/business/greece-bailout/index.html?hpt=hp_t1
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