BRUSSELS, April 12 (UPI) -- European finance leaders said the 16 members of the eurozone would loan Greece $40 billion at 5 percent interest to help dig the country out of debt.
After months of pledging to help without concrete numbers to back up the promises, the numbers were viewed as a critical step forward to help calm investors worried that Greece could default on its debt, which would undermine the euro.
Royal Bank of Scotland economist Silvio Peruzzo said, "This is a step of clarification the markets are waiting for," The New York Times reported Sunday.
The deal involves contributions from all 16 eurozone members with Germany, the largest economy in the currency collective, contributing about $8 billion.
The International Monetary Fund is expected to offer a loan of $20 billion with better terms.
Last week, Greek bond rates soared to 7.5 percent, but Greek finance minister George Papaconstantinou said bond rates will drop now that a concrete offer from eurozone members had been made public.
"The aim is for us to continue borrowing as normal from the markets, and we believe we will be able to do this now," he said.
