Default Averted Euro Zone Agrees on 130-Billion-Euro Bailout for Greece

Following marathon talks in Brussels, euro-zone finance ministers have agreed upon a second rescue package for Greece, worth 130 billion euros. The deal saves Athens from having to default in March. As part of the agreement, the private sector will take a 53.5 percent haircut on its holdings of Greek debt.
The Euro Group press conference on Tuesday morning. From left: Klaus Regling, CEO of the European Financial Stability Facility (EFSF), IMF head Christine Lagarde, Euro Group chairman Jean-Claude Juncker and European Monetary Affairs Commissioner Olli Rehn.

The Euro Group press conference on Tuesday morning. From left: Klaus Regling, CEO of the European Financial Stability Facility (EFSF), IMF head Christine Lagarde, Euro Group chairman Jean-Claude Juncker and European Monetary Affairs Commissioner Olli Rehn.

YVES HERMAN/ REUTERS
dgs -- with wire reports