"[An agreement] is an important result that removes immediate risks of contagion"
- Mario Monti, Italian Prime Minister
European leaders agreed on a 130 billion euro bailout package for Greece on Tuesday after forcing the nation to commit to additional austerity measures and private debt holders to take greater losses.
"We have reached a far-reaching agreement on Greece's new program and private sector involvement that would lead to a significant debt reduction for Greece ... to secure Greece's future in the euro area," Jean-Claude Juncker, who chairs the Eurogroup of finance ministers, told a news conference.
"It's an important result that removes immediate risks of contagion," Italian Prime Minister Mario Monti said on Tuesday.
"A nightmare scenario was avoided," said Greek Finance Minister Evangelos Venizelos in Athens. "It is maybe the most important [deal] in Greece's post-war history."
© Dukascopy Bank