EU Makes Deal on Greece Debt

Is this the end of the Greek debt crisis? The European Union reportedly reached a major agreement late Wednesday. The “three-pronged” deal involves banks taking a 50 percent loss on the nation’s debts. The write-down will apply to private bondholders on their Greek debt. The plan will in turn reduce Greece’s debt and give more loans—also helping Europe avoid a market meltdown. European Union president Herman Van Rompuy said the euro zone and the IMF, which have keeping Greece afloat, will pump €100 billion into the country. French President Nicolas Sarkozy said the decision will “relieve the whole world.” Negotiations at the euro-zone summit were stalled over this “haircut” for bondholders.