Ottawa Citizen

Prime minister hails rescue plan


Greek Prime Minister George Papandreou late Thursday hailed a European move to extend a rescue package to debt-laden Athens. “Europe has taken a step forward … Europe and Greece will emerge stronger from this crisis,” Papandreou told the Net channel. The 16 countries that share the euro currency agreed late on Thursday to back a FrancoGerm­an plan to offer Greece loans in combinatio­n with the IMF. The unpreceden­ted tie-up, which would reportedly be two-thirds funded by eurozone contributi­ons and one third by the Internatio­nal Monetary Fund, will only be activated as a “last resort” and will involve unsubsidiz­ed interest rates, according to a text released by Berlin and Paris. For loans to be activated, all eurozone members must agree.

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