European leaders agree deal on Greek debt

European countries have agreed a deal to resolve the region's debt crisis which will include Greek bond holders taking a 50% haircut and see the eurozone bailout fund increased in size.

According to the BBC, a "three-pronged" agreement has been reached after late night talks in Brussels. The leaders said private banks holding Greek debt had accepted a loss of 50% on their bond holdings as part of the deal. Banks must also raise more capital to protect them against losses resulting from any future government defaults. The deal also approved a mechanism to boost the eurozone's main bailout fund to €1tr (£880bn; $1.4tn). The framework for the new fund is to be put in place in November. "The eurozone has adopted a credible and ambitious response to the debt cris...