Greek financial markets rally on debt relief deal

Greek financial markets rally on debt relief deal
The Associated Press

ATHENS, Greece (AP) — Greece’s government borrowing costs have dropped and the stock market is rallying on news that the country’s creditors have agreed to debt relief measures that pave the way for an end to the nation’s eight-year bailout program in two months.

The yield on Greece’s benchmark 10-year bond fell to 4.1 percent Friday, down about 0.2 percentage points. The main stock index was up 2.2 percent.

The agreement concluded overnight in Luxembourg by finance ministers from fellow members of the 19-member eurozone grants Greece a ten-year extension in repaying a large chunk of its crippling debt load.

It also provides the country with enough ready cash to coast it over nearly two more years, without having to resort to expensive international bond markets after bailout loans run out in August.