European leaders agree on Greek bailout plan

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ROME —European leaders have agreed to loan Greece more than $140 billion over the next three years and broadened efforts to support weakened governments and banks in the region in what they hope will be a convincing response to a lingering financial crisis.

The measures approved in Brussels are meant to put Greece on a more sustainable footing and convince world markets that the country — and indeed every other nation that shares the euro as currency — will pay its debts.

As a complement to that program, however, private investors have announced their own initiative to lighten Greece’s debt load. In a separate statement, the Institute of International Finance announced a menu of options for bond holders to cash in or swap existing bonds for longer-term ones, to be repaid over as much as 30 years. The program could be worth as much as $70 billion to Greece over the next three years if, as hoped, 90 percent of bondholders participate.

Full story: European leaders agree to Greek rescue plan