Greek debt deal gets nod from European markets

European markets have signalled their approval for an eleventh-hour EU and IMF deal to provide Greece with another giant loan.

Greek debt deal gets nod from European markets

A $9.5bn credit package was agreed by Eurogroup finance ministers last night after the IMF promised to provide a loan, heading off a potential crisis in mid-July.

The Euronext 100 index was 0.7% higher by Friday (16 June) afternoon while the CAC 40 index of French shares was also 0.7% higher. The DAX index of German shares was 0.26% higher.

This year so far European shares have risen by 9.6%, compared to a similar gain in the S&P 500 index of US shares of 9.4%. The FTSE 100 index of UK shares is 6.15% higher.

Greece has pledged to reduce its spending by a further 2% and other measures in order to receive the credit lifeline, which will prevent it from defaulting on bailout repayments due next month.

The deal brings the eventual end of the Greek drama in sight, with some in Europe talking about the nation being potentially able to borrow again in the coming years.

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