2nd bailout for Greece: another $155B

BRUSSELS -- Eurozone leaders on Thursday agreed to a sweeping deal that will grant Greece a massive new bailout -- but likely make it the first euro country to default -- and radically reshape the currency union's rescue fund, allowing it to act pre-emptively when crises build up.

The eurozone countries and the International Monetary Fund will give Greece a second bailout worth $155 billion, on top of a similar amount granted a year ago.

Banks and other private investors will contribute some $71 billion to the rescue package by either rolling over Greek bonds that they hold, swapping them for new ones with lower interest rates or selling the bonds back to Greece at a low price. Financial markets reacted positively.

"For the first time since the beginning of this crisis, we can say that the politics and the markets are coming together," said European Commission President Jose Manuel Barroso. -- AP