The country's eurozone partners finally come to an agreement on a new loan, but it comes at a high cost.
Feb 21, 2012
(AP Photo/Thanassis Stavrakis)
After nearly four months of negotiations, near misses, bouts of despair, and growing acrimony, the eurozone finally gave its blessing to Greece’s second bailout. It is a huge 130 billion euro package, accompanied by a debt writedown and strict austerity requirements. In a 13-hour-long meeting yesterday, under intense pressure from Germany and the Netherlands, Greece’s private bondholders were forced to take a larger haircut than originally planned—53.5 percent rather than 50 percent. This, according to the International Monetary Fund, will bring Greece’s debt down to 120.5 percent of GDP by 2020.