Market Overview

Tsipras Calls Greek Bailout A 'Growth Package'

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Greece just got its third life as Eurozone leaders offered the country another bailout agreement following a weeks-long saga.

European Commission Chief Jean-Claude Juncker said unequivocally that, "There will not be a ‘Grexit.'" Greek Prime Minister Alexis Tsipras framed the deal as a "growth package," according to the BBC.

See Also: Greece Receives Bailout Deal: Now What?

The deal involves 86 billion euros of financing for Greece over three years, but did not include any provisions for a reduction in Greek debt. The agreement also includes a 50 billion euro fund that will "privatize or manage Greek assets," with 25 billion euros used to recapitalize the Greek banking system.

In addition, the agreement requires Greece to request continued IMF support, while putting at least 50 billion euros of assets in a private fund. In early drafts, that fund would be managed by Luxembourg; however, after Tsipras objected, the EC capitulated and will allow Greece to manage the fund.

Juncker said that the agreement was fair, noting that "there are no winners and no losers." The BBC said that parliaments in several countries will have to approve the deal.

The terms of the bailout have not been received well by many in the Greece. The hashtag #ThisIsACoup was trending on Twitter Inc (NYSE: TWTR).

The Global X Funds (NYSEA: GREK) gained nearly 5 percent in early pre-market trading, adding to gains of 3.8 percent seen last year. Despite the recent gains, the fund was down 16 percent at Friday's close of $11.26. The SPDR S&P 500 ETF Trust (NYSE: SPY) was up 0.7 percent in pre-market trading on the news.

Posted-In: Alexis Tsipras Global X Funds Greece Jean-Claude JunckerNews Eurozone Markets Movers

 

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