Eurozone ministers have agreed to a second bailout deal for Greece worth 130 billion euros that will cut the country's debt to 120.5 per cent of GDP by 2020, after nearly 13 hours of negotiations.
Time was of the essence for Greece; it faces default unless it makes a bond repayment deadline on March 20.
If Greece fails to pay back the bonds and is forced into bankruptcy, the embattled nation could be forced to leave the eurozone and return to its previous currency, the drachma.
Late last year, eurozone leaders and the International Monetary Fund both said the country's debt load should be brought down to about 120 per cent of annual economic output by 2020, down from the current 160 per cent.
However, a new report issued by the European Commission, the ECB and the IMF said the new package, austerity measures and the private debt-relief plan will still leave the debt load at about 129 per cent of economic output.
The Greek government had earlier passed a large array of austerity measures required by the eurozone, despite violent protests in the streets. It also agreed to carry on with the measures after general elections, which are scheduled for April.
Greece's Finance Minister Evangelos Venizelos arrived in Brussels Sunday night and had been positive that a deal would be reached.
"For Greeks, this is a matter of national dignity and a national strategic choice and no other integrated and responsible choice can be opposed to it," he said.
Eurozone ministers were looking for further concessions, including the creation of an escrow account through which the bailout money will flow. The eurozone ministers believe the account will keep Greece on track with its austerity program, because it would require that debt and interest payments be paid before public servants.
With files from The Associated Press
