Greece can breathe a sigh of relief. On April 11, the 16 members of the European Union that use the euro agreed to lend $40 billion to the struggling nation. Under the long-awaited financial-rescue plan, Greece, which is $400 billion in debt, would be able to borrow at interest rates of about 5%, significantly lower than commercial market rates, which have been higher than 7%. The International Monetary Fund is expected to offer an additional $20 billion. Greece did not immediately accept the E.U.'s overture, saying it would wait to see if the pledge alone was enough to lower interest rates. Greek leaders also hope to continue to raise money by borrowing from capital markets and through austerity measures.
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