LONDON -(Dow Jones)- The cost of insuring Greek sovereign debt against default dropped sharply in early trading Monday, after details of a European Union and International Monetary Fund aid deal for Greece emerged over the weekend.
Greece's five-year sovereign credit default swaps were around 350 basis points Monday, according to one trader, from 420 basis points late Friday, although bid-offer spreads were wide.
That represents a EUR70,000 fall in the annual cost of insuring EUR10 million of Greek government debt for five years.
Euro-zone finance ministers said Sunday that Greece could borrow up to EUR30 billion in three-year loans from other euro-zone members at rates of around 5%.
Greece could also apply for IMF loans.
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