Eurozone leaders relax loan repayment rules

29 June 2012

A series of measures have been agreed upon that will ease repayment rules for emergency loans handed out to Spanish banks.

As well as this, the conditions for possibly giving help to Italy have been relaxed, in a move that may not sit well with German chancellor Angela Merkel.

Luxembourg prime minister Jean-Claude Juncker - head of the euro finance ministers group - told Bloomberg the short-term measures will benefit both countries.

"We will keep all options open to do the interventions that need to be done to calm the situation. There is a whole array of possible interventions and measures," he added.

It marks the fourth time in the past 12 months that leaders of the 17-nation bloc have faced a make-or-break meeting as problems in the eurozone rumble on.

For Ms Merkel, it represented the first time she had attended such a gathering with new French president Francois Hollande.

By Claire Archer

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