10/27/2011 04:00 EDT | Updated 12/26/2011 05:12 EST

Greek stocks surge on European debt deal, banks boosted despite expected bond losses

ATHENS, Greece - Shares on Greece's stock market have risen sharply following a debt deal reached by European leaders.

Shortly after opening Thursday, shares on the Athens Stock Exchange were up 3.46 per cent at 800.55, with banking stocks up more than 10 per cent — after suffering heavy losses earlier this week.

The hard-fought European deal requires banks to take on 50 per cent losses on Greeks bonds. Eurozone countries and the International Monetary Fund will also provide an additional €100 billion ($140 billion) in rescue loans as a second bailout package for Greece.