Shares across the Eurozone improved this morning after European Union ministers announced a resolution to the debt crisis talks.
Stock markets jumped in London, Frankfurt and Paris, while the euro rose against the dollar and the pound.
As part of the deal thrashed out by the leaders of the 27 EU nations, private debt owed by Greece will be trimmed in half, with banks agreeing to receive 50% of the money they are owed.
It means that the country will owe 120% of its gross domestic product in debts by 2020, not 180% as would have been the case.
The markets reacted positively to the deal, with the FTSE 100 up by 2.23% to 5677.06 this morning, while the German Dax index rose by 3.68%.
France's Cac 40 index rose by 3.82% following the news, with shares in Greece surging by almost 5%.
Stocks also increased in the Far East and Australia yesterday.
As part of the deal, the size of the Eurozone Financial Stability Facility, which acts as a bailout fund, is set to be significantly increased from 440 billion euros to 1 trillion euros (£880 billion).
The fund has been used to protect bailout economies such as the Republic of Ireland and Portugal, with an enlargement agreed to protect other struggling economies, such as Spain and Italy.
However, there are fears that the 1 trillion euro fund will still not prove to be enough, with the amount at the lower end of what analysts predict is needed.
And to protect against losses from defaults, banks across the EU have been told to raise around 106 billion euros.
It is hoped that by improving their liquidity, the major banks across the continent will effectively shield themselves from private or public defaults.
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