Business Insider
March 14, 2011
Friday's agreement by eurozone leaders has been seen as a significant beat over expectations, according to analysts at Morgan Stanley and Societe Generale.
The results were:
* Cuts in the interest rate for Greece's bailout bonds, and lengthening of their repayment period
* An increase in the size of the EFSF, the region's bailout fund, to €440 billion
* Agreement on the EFSF's ability to buy government debt in the primary market
* The ESM, which will replace the EFSF in 2013, will be increased to €500 billion in size
* The "pact for competitiveness" will happen, but will be weakened and called the "pact for the euro"
* The Irish still don't get new bailout terms because they won't give up their low tax rate
Why is this impressive? In the build up to the meeting, it looked like we would get nothing on the "pact for competitiveness," and that Greece would struggle to persuade German Chancellor Angela Merkel to ease their bailout terms.
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