The bond swap aims to reduce Greece's debt by €100bn and is a key part of a second, €130bn international bailout.

But with the country badly in need of a $20bn international bailout - is it about to perform a U-turn and back down?

Democratic critics want to tie international bailouts and other financial aid to human rights issues and improved conditions for workers.

Bank stocks may have jumped on hopes that Brazil's financial woes would be stanched by an international bailout.

Despite a generous international bailout last year, Indonesia is sinking deeper into financial chaos and political paralysis.

Use of the fund does not require approval by Congress, where there is some resistance to international bailouts.

Issues to watch: taxes, health and education; trade fights, and the American role in international financial bailouts.

Unlike the Clinton administration, the Bush administration took office skeptical about international bailouts.

Chances are President Bush will end up organizing a multibillion-dollar international bailout.

Administration officials dismissed concerns that Japan could follow South Korea as the next country to need an international financial bailout.