New Deal to Rescue Greece

European leaders seem close to a deal to rescue Greece from its sovereign debt crisis. Under the previous agreement Greece was due to return to bond markets in 2011. However with Greek debt yields running above 16% this is seen as unworkable.  Under the expected new arrangement, Greece is likely to look to roll over much if its shorter term debt in offer for higher yields to investors and the prospect of further cuts in government spending.

Greece is also said to be considering the sale of state assets and even the offloading of its gold reserves.

The news of hopes to an end to the Greek saga lifted stock markets across Europe. In other news S&P have said that they do expect Ireland will be able to return to the bond markets next year as planned hopefully bringing an end to the current crisis.