BRUSSELS — Heavily indebted Greece won a major pledge of financial support from the other countries that use the euro and the International Monetary Fund on Thursday in a deal that aims to halt a government debt crisis undermining confidence in Europe’s currency union.
The joint eurozone and IMF bailout program comes with strict conditions and makes no money available immediately. It could be tapped only if Greece cannot raise funds from financial markets, and it would require the agreement of all 16 eurozone countries to release the loan funds.
Eurozone nations who agreed on the plan proposed by Germany and France, the zone’s two largest members, also called for much tougher rules and sanctions to prevent government debt and deficits from getting out of control in the future. They also want stricter oversight for member economies to prevent another crisis.
The bailout program could be used to help other vulnerable eurozone nations such as Portugal and Spain that have seen debt soar after the global economic turmoil of the past several years.
The deal forged at a summit Thursday night in Brussels was a clear victory for German Chancellor Angela Merkel, who had taken a tough line on any bailout.
