â¿¿A 15-year extension of the maturities of loans from other countries and the eurozone's bailout fund, the European Financial Stability Facility, and a deferral of interest payments by Greece on EFSF loans by 10 years.
â¿¿ The ECB will give up any of the profits it made on the Greek bonds it holds. Rather than giving back the money directly, which is against its founding charter, the ECB will hand it over to the eurozone's national central banks, which will then pass the funds on to Greece.
â¿¿ A program whereby Greece could buy back some of its debt from private investors. The timing for this program is still to be revealed â¿¿ mainly to stop the price of the bonds from rising in the market, thereby undermining any hope of success. Germany's Schaeuble said the debt buyback will be financed by the current bailout program, the next installment of loan payments, as well as Greece issuing more treasury bills.
The deal still requires the authorization of a number of parliaments in Europe, including Germany's, where patience with repeated Greek rescues has been running low.However, Rainer Bruederle, the caucus leader of the Free Democrats, the junior coalition partner, said he expects broad approval when changes to the program are voted on this week. "Conditions have been put together which maintain a tough mechanism toward Greece, but still save us from a collapse of the Greek economy possibly having consequences that could pull down the whole of Europe," he said. ____ Pylas contributed from London. Geir Moulson and Juergen Baetz in Berlin also contributed.