NEW YORK (CNNMoney) -- European Union leaders announced an agreement early Thursday on debt crisis measures, including a hard-fought deal with private sector investors to write down Greek bonds by 50%.
The agreement came at the end of a marathon round of talks to finalize the details of a comprehensive policy response to the government debt and banking problems threatening the stability of the euro currency and global economy.
The writedowns were one of three inter-related problems political leaders must solve to devise a comprehensive solution to Europe's debt crisis. They must also determine how to leverage a government-backed bailout fund and stabilize the banking sector.
"The overarching goal of the exercise is to foster confidence in the European banking sector," said European Council president Herman Van Rompuy.
The lawmakers also signed off on a new investment vehicle that could be used attract capital to the EFSF from private-sector players such as sovereign wealth funds.
China has "expressed interest" in the so-called special purpose investment vehicle, an official told CNN.
The possibility that China could back the the rescue effort helped lift U.S. stock prices late Wednesday.
The agreement came at the end of a marathon round of talks to finalize the details of a comprehensive policy response to the government debt and banking problems threatening the stability of the euro currency and global economy.
The writedowns were one of three inter-related problems political leaders must solve to devise a comprehensive solution to Europe's debt crisis. They must also determine how to leverage a government-backed bailout fund and stabilize the banking sector.
"The overarching goal of the exercise is to foster confidence in the European banking sector," said European Council president Herman Van Rompuy.
The lawmakers also signed off on a new investment vehicle that could be used attract capital to the EFSF from private-sector players such as sovereign wealth funds.
China has "expressed interest" in the so-called special purpose investment vehicle, an official told CNN.
The possibility that China could back the the rescue effort helped lift U.S. stock prices late Wednesday.
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