Eurozone finance ministers reached a long-delayed €130bn second bail-out for Greece early on Tuesday after strong-arming private holders of Greek bonds to take even deeper losses than they had accepted last month.
Although Greek bondholders agreed in October to accept a 50 per cent cut in the face value of their bonds in face-to-face negotiations with Nicolas Sarkozy, France president, and German chancellor Angela Merkel, they will now be offered a “voluntary” deal with a haircut of 53.5 per cent, eurozone officials announced.
“The new programme provides a comprehensive blueprint for putting the public finances and the economy of Greece back on a sustainable footing,” said Jean-Claude Juncker, chairman of the eurogroup of finance ministers.