EU finance ministers have agreed a €750bn (£650bn) bailout plan to prevent the Greek debt crisis from spreading to other countries.

Of this money, €500bn will come from the EU, while up to €250bn will be contributed by the International Monetary Fund (IMF).

Under the three-year plan, the 16 member states of the single currency will have access to €440bn of loan guarantees, and €60bn of emergency European Commission funding.

Talks were called on Friday night amid fears that the Greek financial crisis was spreading to other financially troubled states, such as Portugal and Spain.

After the talks, which lasted for 11 hours, Spanish finance minister Elena Salgado said: "We are placing considerable sums in the interest of stability in Europe."

The euro has strengthened in the Asian stock markets, whose opening coincided with the announcement of the deal.

On Friday, eurozone leaders ratified a €110bn loan package to Greece, backed by the EU and the IMF.

Under the original scheme, Britain was already exposed to a potential £7 billion cost. Treasury officials say that its ultimate liability under the enhanced plan will be a further £8 billion. This brings the total cost of Britain's involvement to £15 billion.

Chancellor Alistair Darling told the BBC that it would cost Britain this much only in the event of the "100 per cent default" by an EU country.