Greece averts default - for now

The EU, IMF, and Greece have struck a deal to write down 40 billion euros in debt that will free up funds to help the country pay its bills. Not exactly can kicking, but Greece is certainly not out of the woods yet. Reuters: The Greek government and financial markets were cheered on Tuesday by an agreement between euro zone finance ministers and the International Monetary Fund to reduce Greece's debt, paving the way for the release of urgently needed aid loans. The deal, clinched at the third attempt after weeks of wrangling, removes the biggest risk of a sovereign default in the euro zone for now, ensuring the near-bankrupt country will stay afloat at least until after a 2013 German general election. "Tomorrow, a new day starts for all Greeks," Prime Minister Antonis Samaras told reporters at 3 a.m. in Athens after staying up to follow the tense Brussels negotiations. After 12 hours of talks, international lenders agreed on a package of measures to reduce Greek debt by...(Read Full Post)