UPDATE: New Greek rescue plan - industry reaction

Managers have welcomed the €109bn bailout plan for Greece agreed by European leaders yesterday, saying although sovereign debt crisis is not over, the latest plans are a step towards a solution.

The draft rescue plan includes a partial default on Greece's debt, as €37bn of the bailout fund will come from private sector bondholders. The period of repayment has also doubled from seven and a half to fifteen years and the interest rate on rescue loans has been cut from 5% to 3.5%. According to F&C, authorities expect 90% voluntary participation of the private sector, which would provide about €135bn between 2011 and 2020. The second key element of the scheme is the extension of the powers and flexibility of the European Financial Stability Facility (EFSF), which will enable the f...