Euro zone agrees second bailout for Greece (adds).

22/7 Tass 14

BRUSSELS, July 22 (Itar-Tass) —— Euro zone leaders agreed a second bailout for Greece at an emergency summit on Thursday which may comprise 109 billion euro of EU and IMF funds. Private investors are expected to provide 37 billion euro in the coming three years, said the euro zone summit statement on Thursday.

“We agree to support a new program for Greece and, together with the IMF and the voluntary contribution of the private sector, to fully cover the financing gap. The total official financing will amount to an estimated 109 billion euro,” the statement said.

Private investors were offered to voluntarily swap their Greek bonds for longer maturities at lower interest rates to help Greece. The purchase of Greek bonds on the secondary market will yield another 12.6 billion euro raising private investor contribution to the new bailout program to 49.6 billion euro, a third of the total.

European Council President Herman van Rompuy said the European Financial Stability Facility (EFSF) would be allowed to buy bonds on the secondary market if the European Central Bank deems it necessary.

Italian Prime Minister Silvio Berlusconi estimated at a press conference the total bailout offered by the euro zone, the IMF and private capital will amount close to 158 billion euro.

However European Council President Herman van Rompuy and European Commission President Jose Manuel Barroso refused to officially provide any figures as the amounts have yet to be approved by parliaments of euro zone member-states.

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