Europe agrees to second Greek bailout

European finance ministers and other top European officials said they stand ready to provide up to 130 billion euros ($171.9 billion) of extra financial aid to Greece until 2014. Under latest agreement, European member states will lower interest rates on their loans to Greece retroactively to a margin of 150 basis points from 200 basis points. Also national central banks will pass any profits on Greek government bond holdings in their investment portfolios directly back to Greece. The Eurogroup said that Greece’s debt-to-GDP ratio is expected to fall to 120.5% by 2020, from around 160% in 2011.

The Eurogroup said that Greece’s debt-to-GDP ratio is expected to fall to 120.5% by 2020, from around 160% in 2011.