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Archive for Friday, March 26, 2010

Eurozone agrees on bailout plan for Greece

March 26, 2010

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— Heavily indebted Greece won a major pledge of financial support from the other countries that use the euro and the International Monetary Fund in a deal that aims to halt the government debt crisis undermining Europe’s currency union.

The joint eurozone and IMF bailout program comes with strict conditions, making no money available to Greece right now. It could be tapped only if Greece — or other financially troubled eurozone members — cannot raise funds from financial markets and would require the unanimous agreement of the 16 eurozone countries to release the loan funds.

The agreement at a Thursday meeting of European Union leaders was a clear victory for German Chancellor Angela Merkel, who demanded that a rescue for Greece only come when the country runs out of other options. She also insisted that any backstop must include the IMF.

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