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European Union, banks to cut Greece’s debt by half

Political leaders of the European Union (EU) and banks have agreed to cut Greece's sovereign debt by 50%. At the same time, the European rescue EFSF fund will be increased to one trillion (!) Euro. EU Council's President Herman Van Rompuy has said that with the new measures Athens will be able to reduce its debt to GDP ratio from 170% to 120% until 2020. Meanwhile, France's President Nicolas Sarkozy asked China for financial aid via a "special investment fund". Beijing's role, however, remains unclear.