While EU finance ministers put strategy for emergency loans to relieve Greece in their first-day meeting on Monday, they did not divulge details of the rescue plan and what would be shape of the new loan. Probably, details would be announced during the coming EU leaders scheduled summit meeting next week.
In addition, EU finance minister failed to put plans for hedge fund and private equity regulation. Nevertheless, an EU official mentioned an agreement would be reached before the end of the June this year.
Jean-Claude Juncker of Luxembourg said on Monday the aid for Greece will not include loan guarantees, but it will mainly depend on direct financial aid from European members. It is expected that loans would be gathered by a group of willing European countries or EU Commission may make a fund supported by the euro-area member states.
However, the optimistic action that took place yesterday is when S&P welcomed the retrenching measures launched this month by the Greek government. S&P confirmed Greece's long-term rating of BBB+ ensuring that the 4.8 billion euros plan through tax increase and wage cuts in addition to other austerity measures would enable Greece to cut its deficit to 8.7% from 12.7% within 3 years as planned.
After the optimistic news, the 16-nation currency climbed 0.6% versus the U.S. dollar on Tuesday to close at 1.3772 from the day's opening at 1.3675.