Euro boosted by Greek rescue package

| April 12, 2010 | 0 Comments
Euro boosted by Greek rescue package

The euro has started to recover after details of a loan package emerged over the weekend for debt-ridden Greece.

The currency rose by more than 2 cents (1.5%) against the dollar, to $1.3672, while it also gained on the pound to 88.408p.

Yesterday, finance ministers of the euro zone nations agreed to provide emergency loans to Greece.

The deal will see €30 billion (£26 billion) in emergency loans and comes at a time when Greece is battling with debt of €300 billion (£273 billion).

The country is currently taking action to reduce its public deficit from 12% to 8% of GDP this year.

The rescue package is intended as a back-up plan but Greece hopes it will not have to activate the loans and is instead banking on its series of austerity measures to help to trim its debt levels.

The loan deal comprises a three-year financing programme at interest rates of about 5%.

Greece has to find €11.5 billion (£10.2 billion) by May to meet its financial obligations and, as a result, intends to auction treasury bills totalling €1.2 billion later this week.

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