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A demonstrator waves a flag in front of the Parliament building in Athens, Greece. - 

Steve Chiotakis: It's good news and bad news for Greece today. Europe agreed to $17 billion more in bailout money to stop Greece from defaulting. That's good. But it could go bust in as little as a couple of months. That's bad. From the Europe Desk, Stephen Beard reports.


Stephen Beard: Greece needs a second bailout. But there's a problem. The Germans -- who would pick up much of the tab -- are insisting on a condition. They want the investors who bought Greek government bonds to share some of the pain. So a plan has been developed: after intense negotiations some bondholders have -- voluntarily -- agreed to delay cashing in some of their bonds. Seems fine right?

Well not according to the ratings Agency S&P. Julian Pendock of Senhouse Capital says S&P has just ruled that this agreement is not voluntary.

Julian Pendock: There's been a lot of arm twisting behind the scenes. It is involuntary. And therefore counts as what they would call a "credit event." Technically they are saying it counts as a default.

And if Greece defaults, every Greek bank could go bust -- and as early as September.

In London, I'm Stephen Beard for Marketplace.