Greece is on its way to getting the next tranche of its much-needed bailout loans after finance ministers from the Eurozone countries agreed on a programme to reduce the country's debt.
Christine Lagarde says the IMF has increased sustainability in Greece. Credit: Press Association
IMF Managing Director Christine Lagarde: "The IMF wanted to make sure the euro partners would take the necessary actions to bring Greece's debt on a sustainable path. I can say today that it has been achieved."
European Central Bank chief Mario Draghi: “I very much welcome the decisions taken by the ministers of finance. The decision will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece.”
Jean-Claude Juncker, head of the eurogroup: “This is the promise of a better future for the Greek people and for the euro area as a whole, a break from the era of missed targets and loose implementation.”
Greek prime minister Antonis Samaras: "Everything went well... All Greeks fought together. A new day begins."
Eurozone finance chief Jean-Claude Juncker said the agreement includes:
A plan to reduce Greece's debt level to 124% of its GDP by 2020 and below 110% by 2022. The IMF had originally insisted on a debt-to-GDP ratio of 120% by 2020.
A cut of 100 basis points on the interest rate charged to Greece by other Eurozone member states, excluding those countries also receiving bailouts.
A 15-year extension of the maturities of loans from other countries and the eurozone's bailout fund - the European Financial Stability Facility - and a deferral of interest payments by Greece on EFSF loans by 10 years.
Eurozone finance chief Jean-Claude Juncker said the first disbursement of the Greek bailout loan is set to be released on December 13, the Associated Press reported.
A Greek flag flutters in front of the moon in Athens Credit: Reuters/Yorgos Karahalis
"This is not just about money," Mr Juncker said. "It is the promise of a better future for the Greek people and for the euro area as a whole".
Eurozone officials reach deal to reduce Greek debt
Eurozone finance ministers and the International Monetary Fund have reached a deal on an urgently needed new debt target for Greece.
After nearly 10 hours of discussion, the officials agreed to reduce Greek debt by €40 billion (£32.4 billion), paving the way towards releasing an urgently needed tranche of bailout loans.
The debt has been cut to 124 percent of gross domestic product by 2020.
