Eurozone summit deal
27/10/2011
By Ruth Mckee
Further financial turmoil was averted last night when eurozone leaders finally reached agreement on new rescue packages which effectively halved Greek debt and built up the bailout fund.
Tense negotiations led to agreement in three key areas.
Eurozone states committed to recapitalising their banks by 106 billion euros by next summer and increasing the size of the European Financial Stability Fund to one trillion euros. Private investors accepted a 50% write-off of Greece's debts.
The financial markets have responded well to the news this morning with the euro performing better than it has since early September.
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