by Calculated Risk on 5/02/2010 09:01:00 AM

From the NY Times: Greece Reaches Agreement on Bailout

Prime Minister George Papandreou said Sunday that Greece had reached an agreement with the International Monetary Fund and European Union on a long-delayed rescue package that is expected to be as much as €120 billion.
...
Finance Minister George Papaconstantinou set out some of the details of the austerity measures that are required for the bailout package, which were expected to be revealed in Brussels later Sunday. He said that Greece would make budget cuts of €30 billion, or $40 billion, to reduce the budget deficit to below 3 per cent by 2014.
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Indicating that the steps would undermine economic growth, Mr. Papaconstantinou forecast a deeper than expected recession of 4 per cent for 2010, and 2.6 percent in 2011, before the economy returned to growth of 1.1 percent in 2012.

“We will be in recession for the next few years which means that we have to run faster to reduce the deficit,” he said.

More details will be available later today. Greece might be in recession for several years ...

More details from Bloomberg: Greece Accepts Terms of EU-Led Bailout, ‘Savage’ Cuts