Euro Zone Leaders Agree on Greek Aid
Euro zone leaders approved emergency loans for Greece on Friday and governments around the world tried to calm markets shaken by fears that Athens' debt crisis could cause turmoil in other European economies.
An official from the European Union who spoke with CNBC confirmed the planned "coordinated financial assistance" for Greece.
"It's done," another European Union source told Reuters, confirming the leaders of the 16-country single currency group had given their political stamp of approval to an EU-IMF deal to release 110 billion euros ($147 billion) to Greece over three years.
Group of Seven finance ministers discussed the crisis in a conference call after U.S. Federal Reserve officials expressed concern, and President Barack Obama told German Chancellor Angela Merkel by telephone that he backed efforts to rescue Greece.
World stocks held near a three-month low, despite strong U.S. jobs data, because of fears that the emergency loans might not be enough to prevent a Greek default.
"We agreed on the importance of a strong policy response by the affected countries and a strong financial response from the international community," Obama said.
He said regulatory agencies were investigating a sudden drop on U.S. markets on Thursday, which he called "unusual market activity," and would recommend appropriate action. The G7 ministers also agreed to keep a close eye on the markets.
http://www.cnbc.com/id/37026665
