Stock markets rise with Greek bailout hopes

Published:  21 Feb at 4 PM

As reported by the BBC, European stock markets ended favourably before a conference of eurozone finance ministers which is expected to settle a new rescue plan for Greece. Cash-strapped Athens must decide on the 130 billion euro (£110bn; $170bn) bailout package before mid-March to dodge a default on its debts.

Britain’s FTSE 100 went up 0.7%, while French and German stocks also ended higher. Banks on the European continent, which are holding much of Greece’s debt, went up -- Credit Agricole gained 2.5% while Commerzbank climbed 3.6%. European banks, such as Societe Generale and Deutsche Bank, have been keeping their hopes high that a deal mighter be struck to keep Greece in the eurozone. Italy’s main share index went up 1.1%, while France's Cac and Germany's Dax indexes were up 2% last week.

The stock market in Greece also finished higher, as it went up 3.4% last week, marking five consecutive weeks of gains with renewed optimism of a rescue plan. Last year Greek stocks saw a loss of 52% of their value. In 2010, Athens received its first bailout with 109 billion euros from the EU and the IMF. Portugal and the Irish Republic have also received rescue packages.

The eurozone established a bailout fund in order to contain the financial crisis from spreading to bigger economies in the region, and also passed a second bailout package worth 130 billion euros last year.