Factbox: Key elements of euro zone rescue deal for Greece

(BestGrowthStock) – Euro zone leaders reached agreement on Thursday on a safety net to help debt-stricken Greece that would involve bilateral loans and money from the International Monetary Fund.

Here are the main points:

* The agreement spells out how euro zone countries would help Greece, its most troubled economy, in an emergency.

* Member states would contribute to loans as part of a package made up mainly of European financing but with substantial amounts from the International Monetary Fund.

* The mechanism, which the countries describe as an “ultima ratio”, or last resort, could be triggered when “market financing is insufficient”.

* All member states in the euro zone must agree if loans to be made. Any money given would be “subject to strong conditionality”.

* A decision to give loans would be based on the assessment of the European Commission — the EU executive — and the European Central Bank.

* The criterion for assessment would be the degree of the risk instability in the country concerned and for the euro area as a whole.

* The 16 countries in the euro zone would contribute to the loans in proportion to their shareholding in the ECB. This means that bigger countries such as Germany and France would contribute most.

* The loans would be provided at a cost that would include a risk premium and would not be at euro area interest rates. The interest charged will not contain any subsidy element.

* French President Nicolas Sarkozy said the IMF would put up one-third of the money and the euro zone the rest.

* If aid were needed, it would be provided simultaneously by the IMF and euro zone countries, EU President Herman Van Rompuy said.

* Countries agreed to increase the European Council’s role in economic surveillance. This would give more weight to the council, a forum for meetings of heads of state and finance ministers.

* There will be a task force established by Van Rompuy to explore how to improve surveillance of economic and budgetary risks. It will present its measures by the end of the year.

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Factbox: Key elements of euro zone rescue deal for Greece