Europe and Greece Agree To Debt Deal

Europe and Greece agreed to a bailout which will provide the funds needed to pay down its maturing bonds. In return, the Greek government pledged to reduce its debt to GDP ratio to 120% by 2020. The funds provided will go into a segregated account that can only be used for debt payments. The banks holding the Greek debt took a greater than expected loss on the debt. The principal was reduced by 53.5% which represents a net loss of 75% in value. Several of the details on the Greek commitment to improve tax collection and reduce the prices paid to healthcare providers, as well as defense procurements, were also provided.