Eurozone finance ministers have reached a deal with Greece over its second bailout.
After marathon talks in Brussels a 130 billion euro rescue package has been agreed that should resolve its immediate financing needs.
The main sticking point appears to have been finding ways to reduce Greece’s debt further than the Greek government had been willing to go by the year 2020.
Negotiators for private holders of Greek debt offered to accept a bigger loss to help plug a funding gap.
IMF chief Christine Lagarde said after the meeting: “We begin the day today at a debt to GDP ratio of 120.5 per cent, so significant progress has been made overnight that will put Greece in a better position to address a very ambitious programme that it has negotiated over the last few weeks.”
It is hoped the agreement will help draw a line under months of uncertainty that has shaken the currency bloc.
Analysts say with the cuts Greece is being forced to make, the deal will do little to revive the nation’s shattered economy.
There is also scepticism as to whether the government will be able to implement the austerity measures.
Our reporter in Brussels, Margherita Sforza said: “the negotiations went on all night right down to the last cent. Now we will have to see see how it will be taken on the streets of Athens.”