European leaders agreed on expanding the capacity of the European financial stability program from 250 billion euros to 440 billion euros to ease the debt woes that hit the 17-nations using the common currency last year.

In addition, the program will provide funds needed to highly indebted nations at a lower interest rate for all new loans at the current interest rate used by the World Bank.

With regard Greece, which was the first euro area economy to receive a bailout, EU leaders decided to lower interest rate on loans by 100 basis points and expand maturity to seven years and a half instead of the previous three years maturity.