The Greek economy was pulled from a looming and potentially catastrophic default on Tuesday by the countries that use the euro, giving Greece a euro 130 billion ($170 billion) bailout. After a settlement that was in the making for months, the Greek financial ministers and 16 other countries that use the euro disputed into the morning’s early hours over details of the bailout, getting final concessions out of private holders of Greek debt.
The money provided for the new bailout will derive from the eurozone and the International Monetary Fund, which hopes the new program will ultimately put Greece back into a position where it will survive without external support and lock its place in the euro currency union. The agreement seeks to reduce Greece’s immense debt on all fronts, with both official and private creditors going beyond what they claimed was possible in the past. European Commission President Jose Manuel Barraoso reported that the deal “closes the door to an uncontrolled default that would be chaos for Greece and Greek people.”
