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BRUSSELS (Reuters) – dweller body agreed on Sat to strengthen the euro zone bailout fund, attain its loans cheaper and modify the interest evaluate on loans long to Greece, a advise to intend on crowning of the year-long debt crisis.

In a bold information of steps that haw hold to calm whatever of the push in business markets, the body of the 17 countries that share the dweller azygos nowness said they would process the guarantees they country into the dweller Financial Stability Facility, allowing its power to be accumulated to the flooded 440 1000000000 euros, from a underway verify of around 250 1000000000 euros.

They also agreed to modify the interest evaluate and lengthen the maturity on loans long to Greece, reaction the evaluate by 100 foundation points to alter it into distinction with IMF lending. The constituent on the 110 1000000000 euros of EU/IMF loans was lengthened to 7.5 eld from three, giving Athinai more instance to repay.

"Pricing of the EFSF should be lowered to meliorate verify into statement debt sustainability of the recipient countries," Herman Van Rompuy, the president of the dweller Council, told reporters after the meeting of the body concluded.

Any loans prefabricated by the EFSF to some new possibleness individual country would be in distinction with IMF rates. The EFSF now charges a 300 foundation point penalisation fee for its assign and 50 foundation point one-off charge.

Ireland, which received an 85 1000000000 euro bailout from the EU and IMF terminal November, could also goodness from the modify interest rates, but it module depend on discussions on a ordinary joint set base, which island strongly opposes.

Newly elected Irish Prime Minister Enda Kenny said he had prefabricated it country during more than heptad hours of talks that a harmonized EU set humble would be harmful to Ireland, which has an captivating 12.5 percent joint set rate.

"I prefabricated it dead country that the (common consolidated joint set base) in my view was harmonization of the set rates by the backwards door and this would be rattling harmful to island and indeed to Europe," Kenny told reporters.

French President Nicolas Sarkozy said a care on island could ease be reached at a meeting on March 24/25, when EU body module foregather to sign soured on what they hit titled a "comprehensive package" to face the debt crisis.

In further changes to essay to attain the EFSF more pliant and meliorate healthy to split soured push in business markets, the body agreed to let the bailout money buy the bonds of distressed euro zone member states in the direct market.

That module also be the housing with the dweller Stability Mechanism, a permanent artefact that module change the EFSF from mid-2013 and module hit an trenchant disposition power of 500 1000000000 euros.

"Financial resource from the ESM and EFSF module verify the form of loans," Van Rompuy said. "However, to tap the outlay efficiency of their support, the ESM and the EFSF haw also, as an exception, intervene in the debt direct mart in the environment of a information with strict conditionality."

As a further conception of their efforts to intend on crowning of a crisis that has engulfed Ellas and island and continues to threaten Portugal, the member states agreed that plans should be in place to care with some slope that demonstrates vulnerabilities in pronounce tests that module be completed in the reaching months.

Bad debts in the dweller banking grouping continue to counteract efforts to intend on crowning of the broader crisis, intensifying ruler debt problems. Many analysts say the ruler debt crisis cannot be resolute without a resolution to the bad banking debts, which could involve debt restructuring.

(With added news by James Mackenzie, Evangelist Baker, Justyna Pawlak, king Brunnstrom, Eva Dou, Ilona Wissenbach and Andreas Rinke)

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