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Greece bailout extension agreed after eurozone talks

2015-02-20 21:49:35

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Greece and eurozone nations have agreed a deal to extend financial aid after bailout talks in Brussels.

Eurozone finance ministers reached an agreement to extend Greece's financial rescue by four months.

Dutch finance minister Jeroen Dijsselbloem, head of the Eurogroup, said that Athens had pledged to honour all its debts.

"This is a very positive outcome," he told a news conference on Friday night.

"I think tonight was a first step in this process of rebuilding trust. As you know trust leaves quicker than it comes. Tonight was a very important, I think, step in that process," Mr Dijsselbloem said.

Jeroen DijsselbloemEurogroup president and Dutch finance minister Jeroen Dijsselbloem speaking in Brussels earlier on Friday.

Greece has also agreed to present on Monday a list of reforms that would conclude the terms of the existing bailout.

The deal removes the immediate risk of Greece running out of money next month.

It also provides a breathing space for the new Greek government to try to negotiate longer-term debt relief with its EU creditors.

The euro gained against the US dollar on Friday following the announcement, adding 0.3% to $1.1403, while the Dow Jones industrial average and S&P 500 struck new intraday highs.

Sebastien Galy, a foreign exchange analyst at Societe Generale, said: "It certainly looks like we're moving away from disaster. It should help a stress that has been building up in the market to be released."

Source: bbc.co.uk

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