Eurozone finance ministers and the International Monetary Fund (IMF) reached an agreement on Friday evening to extend Greece’s international bailout package for four months.
The deal removes the risk of Greece running out of money next month – an outcome that could have led to the country being forced out of the single currency area.
The 240 billion euro EU/IMF bailout programme had been due to expire at the end of the month.
The agreement also gives Greece’s new leftist government, which was elected on pledges to end austerity policies, time to negotiate longer-term debt relief.
Germany, Greece’s largest creditor, had demanded “significant improvements” in reform commitments by Athens before agreeing to the extension in eurozone funding.