Capable Of Halting The Spread

The main highlight last week was on European leaders' second meeting in July as investors were focusing on the summit in Brussels to know whether they will be able to come out with strong measures that avoid both Greek default and spread of contagion to highly-indebted nations in the region. Indeed, the outcome of the meeting managed to calm down markets and ease the jittery situation as European leaders agreed to give Greece 159 billion euros in new aid (109 billion from the euro area economies and the IMF and the remaining 50 billion will be funded by financial institutions), while the rescue loans maturity will be extended to 15 years from 7.5 and the interest rate will be lowered to 3.5% from current levels between 4.5% and 5.8%. By extension, the European Financial Stability ...