European Markets Close Full Retard Higher as Strength Gains in Extending Loan Terms to Ireland and Portugal

“Yesterday, Reuters reported that EU officials were pushing for a seven-year extension on the bailout loans given to Ireland and Portugal during the euro crisis in recent years.

Today, the “troika” of international lenders at the EU, ECB, and IMF made the recommendation official ahead of a meeting of Eurogroup finance ministers in Dublin taking place on Friday and Saturday.

European markets are on fire today, and bank stocks are leading the way higher across the euro zone. Portugal is up 4.5 percent, Spain is up 3.7 percent, Italy is up 3 percent, Germany is up 2 percent, and France is up 1.9 percent.

Bloomberg‘s Finbarr Flynn & Brian Parkin have the details of the troika’s recommendation:

The troika and the EFSF “would advocate to extend the maximum average maturity by seven years as it appears to be the best compromise accommodating the constraints and preferences of debtors and creditors,” …”

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