Originally, Asian shares climbed on news of the agreement.
The breakthrough came after more than 10 hours of talks in Brussels. It was the eurozone‘s third meeting in two weeks on Greece. The deal opens the way for support for Greece’s teetering banks and will allow the government to pay wages and pensions in December.
The leader of the eurozone finance ministers‘ group, Jean-Claude Juncker, said Greece would get the next installment of cash on 13 December. Greece has been waiting since June for the tranche, to help its heavily indebted economy stay afloat.
European Central Bank president Mario Draghi said the bailout would “strengthen confidence in Europe and in Greece”.
Greece’s international lenders have agreed to take steps to reduce the country‘s debts, from an estimated 144%, to 124% of its gross domestic product by 2020. These include cutting the interest rate on loans to Greece, and returning 11 billion euros to Athens in profits from ECB purchases of Greek government bonds.
Ministers have also agreed to help Greece buy back its own bonds from private investors. In return, Greece has had to impose several rounds of austerity measures and submit its economy to scrutiny.
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reporter
Park Sae-jin
swatchsjp@ajunews.com