Greek Finance Minister Euclid Tsakalotos, right, speaks with European Commissioner for Economic and Financial Affairs Pierre Moscovici during a meeting of eurogroup finance ministers at EU headquarters in Luxembourg on Thursday, June 21, 2018. Eurozone nations are working on the final elements of a plan to get Greece successfully out of its eight-year bailout program and keep its massive debt burden manageable. (AP Photo/Virginia Mayo)

Greek financial markets rally on debt relief deal

June 22, 2018 - 4:36 am

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.

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