BRUSSELS Feb 21 Euro zone finance
ministers struck a deal early on Tuesday for a second bailout
programme for Greece that includes new financing of 130 billion
euros and aims to cut Greece's debt to 121 percent of GDP by
2020, two EU officials said.
"The financial volume (of the Greek package) is 130 billion
euros and debt-to-GDP (will be) 121 percent. Now it's down to
work on the statement," one official involved in the
negotiations told Reuters.
Another official confirmed that the financing would total
130 billion euros with the aim of reducing Greece's debts from
around 160 percent of GDP now to 121 percent by 2020, but
cautioned that drafting of the deal was only just starting.
Private sector holders of Greek debt are expected to take
losses of up to 53.5 percent on the nominal value of their bonds
as part of a debt exchange that will reduce Greece's debts by
around 100 billion euros.
Previously they were expected to take a 50 percent nominal
writedown, which equated to around a 70 percent loss on the net
present value of the bonds.
The debt swap will be financed in part via "sweeteners" that
will be paid to the private bondholders, who will also get
30-year bonds in exchange for the bonds they give up.
The package is the second emergency loan agreement reached
for Greece, which received a 110 billion euro bailout, made up
of bilateral loans from euro zone governments and the IMF, in