Europe_Unifies_to_Assist_Greece_With_Line_of_Aid - Europe...

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Europe Unifies to Assist Greece With Line of Aid By STEPHEN CASTLE and JACK EWING Published: April 11, 2010 BRUSSELS — European leaders provided a long-awaited financial rescue line to Greece on Sunday, offering the country up to $40 billion in aid to meet its giant debt obligations. Under the plan, Greece would receive loans at about 5 percent interest, significantly lower than the rate of 7.5 percent that the markets were demanding last week, though not as low as Greece had wanted. Concerns about a potential Greek default had caused anxiety among markets worldwide and raised fears that the euro would be severely undermined if other struggling countries like Spain, Portugal and Italy followed Greece to the financial precipice. By providing details of the loan package, Europe sought to end the uncertainty it had created through a series a vague reassurances over the last several months. European leaders had engaged in weeks of debate on whether to help Greece and how to do it, and the absence of resolve had prompted investors to demand high rates on loans to the Greek government. “The solidarity is there,” said Silvio Peruzzo, euro area economist at the Royal Bank of Scotland . “That is the most important message from today.” Jean-Claude Juncker of Luxembourg, who heads the group of finance ministers from the euro zone members, said at a news conference in Brussels: “It shows there is money behind this.” In addition to the $40 billion in European Union aid, the government in Athens can expect the International Monetary Fund to offer up to $20 billion in additional funds, probably at an even lower interest rate. The move Sunday puts the 16 countries that use the euro — known as the euro zone — closer to what
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This note was uploaded on 05/07/2011 for the course BUS 1302 taught by Professor Falcon during the Spring '11 term at University of Texas at Dallas, Richardson.

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Europe_Unifies_to_Assist_Greece_With_Line_of_Aid - Europe...

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