Europe agrees to bail out Greece

On Monday after about a 12-hour Eurogroup meeting, the heads of the eurozone finance ministers finally agreed to provide another credit tranche to Greece. Under the terms of the program of government debt of Greece should be reduced to 120.5% of GDP in 2020. The third quarter of 2011 showed the public debt of Greece of about 161% of GDP or 350 billion euros.

The total amount of assistance to be provided is 130 billion euros. But the first package of financial assistance of the International Monetary Fund will be allocated in the amount of 13 billion euros, which are to be provided to the country until March 20, when Greece will have to pay 14.5 billion euros of debt.

The size and terms of the second part of this trance to be given to the Greek government has not yet been announced.

However, the Greek government plans to draft a bill on forced withdrawal of the debt of Greece by private creditors. If earlier the withdrawal a part of the debt by private creditors was held on a voluntary basis, it is now planned that if the lender obtains consent from 70 percent of creditor to write off a part of the debt in a specified amount, the remaining 30percent should do the same, regardless of their desires. The Greek debt to the private investors is estimated at 200 billion euros.

"This law will be available to be used in the implementation of the PSI (private sector involvement) transaction if necessary to achieve participation at the levels anticipated by the 26 October 2011 Euro summit statement," said the Ministry of Finance.