World Bank chief welcomes Europe debt deal

MANILA, Philippines—World Bank chief Robert Zoellick is welcoming a deal clinched by European leaders to address the region’s debt crisis, saying it may help avert the spread of the financial turmoil to emerging markets that provide half of global economic growth.

European leaders agreed Thursday after a night of tense negotiations to have banks take bigger losses on Greece’s debts and to boost the region’s weapons against market turmoil.

But Zoellick warned that the agreement is only a first step. He says it’s important to follow through on the deal’s difficult implementation and to lay the foundation for the world economy to resume growth.