Eurozone Leaders Agree On Bailout Plan For Greece

Source: AP

(AP) BRUSSELS (AP) - European leaders on Friday said their hard-won deal to rescue debt-ridden Greece after months of bitter wrangling will help calm jittery markets and stabilize the euro, which has been rocked by the fiscal crisis.

The initial evidence was mixed, however - the euro recovered and Greek borrowing rates eased but European stock markets, with the exception of Athens' index, fell.

The bailout plan, hammered out late Thursday by eurozone nations, sets out a system to rescue Greece if it finds itself unable to borrow. It would provide individual loans from other eurozone countries and funding from the International Monetary Fund.

But it sets out strict conditions for activating the mechanism, saying it could only be used as a last resort, and requires unanimous agreement of all 16 countries that use the euro

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