Arab Today, arab today eu oks deal package to battle debt crisis
Last Updated : GMT 06:37:29
Arab Today, arab today
Arab Today, arab today

EU OKs deal package to battle debt crisis

Arab Today, arab today

Arab Today, arab today EU OKs deal package to battle debt crisis

Brussels - Xinhua

European leaders agreed early Thursday that private creditors have to accept a 50 percent cut in the value of the Greek government debt they hold, and the bailout fund would be increased to 1 trillion euros (1.37 trillion U.S. dollars). \"We have reached a sustainable solution for Greece,\" said Herman Van Rompuy, the European Council president, at a press conference held after a prolonged eurozone summit which dragged from Wednesday evening to Thursday morning. To reduce Greece\'s public debt to 120 percent of its GDP in 2020, a voluntary contribution by private holders of Greek debt is needed, and they have agreed to take a nominal discount of 50 percent on notional Greek debt, Van Rompuy told reporters. The EU leader also hailed a \"sufficient firewall against contagion, thanks to an agreement to multiply by fourfold the firepower of the European Financial Stability Facility (EFSF) rescue fund\" to increase it to 1 trillion euros. To bolster the firepower of the EFSF, the eurozone has identified two approaches, including giving credit enhancement to sovereign bonds issued by eurozone member states and creating Special Purpose Vehicles (SPV) to provide finance to EFSF\'s operations. Either of the approaches could lead to leverage of 4 or 5 times, and the two can be used simultaneously, so as to increase the robustness of the financing strategy, said Van Rompuy. The announcement came hours after EU countries agreed to raise the core capital ratio of the European banks to 9 percent by June 30, 2012 during a preceding EU summit. By approving a co-ordinated scheme to recapitalize banks across Europe, \"We foster confidence in the European banking sector,\" and this will enable the banks to withstand shocks in the current exceptional circumstances, said Van Rompuy. Under the recapitalization plan, banks should first use private sources of capital, including through restructuring and conversion of debt to equity instruments. If banks are unable to raise enough fund themselves, national governments should provide support, according to a statement issued after the EU summit. \"When the national support is not available, recapitalization should be funded via a loan from the EFSF,\" said the statement.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eu oks deal package to battle debt crisis Arab Today, arab today eu oks deal package to battle debt crisis

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eu oks deal package to battle debt crisis Arab Today, arab today eu oks deal package to battle debt crisis

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday