European Union president Herman Van Rompuy said the rescue deal would be financed by both the EU and the International Monetary Fund. Well it will actualy be financed by an asortment of taxpayers but we had better not get to factual on the Euro boys (and Angela).
European governments and the IMF will contribute a total of 109 billion euros. The private sector’s share will amount to 49.6 billion euros.
The deal was reached following an emergency summit of the 17 eurozone nations in Brussels.
It is alleged there was a marathon seven hour meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel, to sort out their differences so an agreement could be reached.
The proposal is that the European Union will provide additional loans with longer pay back periods “to decisively improve the debt sustainability and refinancing profile of Greece.”
But unless the eurozone finds a way to bring Greece back from the brink of defaulting on part of its $500 billion debts, it is feared that other countries exposed to the debt will begin to experience problems.
Weaker economies such as Italy and Spain — seen as too big to bail out — could falter, tearing apart the eurozone, and hurting other nations exposed to the debt.