Greek financial markets surged on Tuesday after Athens agreed a multi-billion-euro bailout deal with international lenders.
The deal, reached after marathon talks, is expected to be signed off by Greece’s parliament and euro zone finance ministers this week to ensure Athens has enough cash to meet a chunky repayment to the European Central Bank on Aug. 20.
This would bring to a close a painful chapter of aid talks for Greece, which fought against austerity terms demanded by creditors for much of this year before relenting under the threat of being the first country to exit the euro zone.
“It is not simply relief that we have finally arrived at a conclusive point, but that we have done so in time for Greece to meet their upcoming payment to the ECB,” said Rabobank strategist Matt Cairns.
The new bailout is expected to be worth up to 86 billion euros ($94.75 billion) in fresh loans, but there was no immediate confirmation of its size.