Bailouts

Europe to Lend Greece $41 Billion?

European finance leaders have made plans to bail out Greece, offering to lend the struggling nation $41 billion. The fellow E.U. nations would lend the money at below-market rates, around 5 percent interest, to help Greece climb out of debt. An actual bailout would come only with a unanimous vote among Eurozone leaders, The Wall Street Journal reported. Greece may well have to take advantage of the bailout if it fails to successfully borrow from capital markets, though the country's government continues to claim that it will not need the help of its neighbors or the International Monetary Fund. Jean-Claude Juncker, Luxembourg's premier and the head of the council of Eurozone countries, said that the bailout would be given "if needed" and that the preliminary plan "shows that there is money behind this." It has yet to be determined under what specific circumstances Greece would be able to receive the money, and how much money it would be lent in total. The strict terms of the bailout plans are consistent with the fact that a bailout is unpopular with many Euro leaders, who want to push Greece toward borrowing on capital markets.