Euro strengthens after deal with Greece
An April 11 2010 agreement among the 16 countries of the euro zone on the terms of a multi-billion euro package of financial support to be given to Greece was followed by the euro gaining sharply against the dollar and pound sterling. In a statement on April 11, the euro zone member states said that they were ready to provide financing via bilateral loans centrally pooled by the European Commission as part of a package including International Monetary Fund (IMF) financing. The European Commission, in liaison with the European Central Bank (ECB), was scheduled to start working on April 12, along with the International Monetary Fund and the Greek authorities, on a joint programme, including amounts and conditionality, building on the recommendations adopted by the Ecofin Council in February 2010. In parallel, euro area member states will engage the necessary steps, at national level, in order to be able to deliver swift assistance to Greece, the euro zone statement said. Euro zone member states will decide the activation of the support when needed and disbursements will be decided by participating member states, according to the statement. The programme will cover a three-year period. The euro zone member states, according to the statement, are ready to contribute for their part up to 30 billion euro in the first year to cover financing needs in a joint programme to be designed with and co-financed by the IMF.