The four month reprieve won by Greece tonight from its Eurogroup paymasters appears to be a heavy defeat for the country, ITV News Europe Editor James Mates has tweeted.
The euro rebounded against the dollar and global equity markets surged to record highs tonight after Greece and euro zone finance ministers reached an agreement to extend a Greek financial rescue package for four months.
Greece and Eurozone finance ministers have reached deal to extend the Greek bailout by four months, euro zone officials said.
"It's done. For four months," one official said
Things are moving quickly at talks between Eurozone ministers in Brussels. In the last hour a European official emerged to say that there is now a text which the Greeks and the rest of the Eurozone ministers are working on - which is a big step, and he said to expect an announcement soon.
What we think is going to happen is that this will buy time for the Greeks, and it will keep the emergency funding flowing, which was due to expire next week. It comes after an afternoon - five hours in fact - of pre-meeting meetings of small groups of ministers assembled here.
As he arrived the German finance minister said that everything that needs to be said has been said - he seemed pretty downbeat.
The Greek finance minister radiated optimism as he has done throughout the pass couple of weeks of negotiations. Right now all members of the Eurozone are still in talks, with Christine Lagarde of the IMF -they have to agree to this text. I asked the Greek finance minister a few minutes ago what this would be and he confirmed it would be a six month extension to the loans. In return the Greeks have agreed to keep the tough economic reforms, and this has left the Germans very satisfied, I understand. This is what they think is necessary to keep Greece on a sustainable economic recovery. One thing is for sure - this isn't the end of it - they have to agree the details in the next weeks and months.
The Greek ambassador in Brussels told ITV News Economics Editor Richard Edgar he expects the loan deal agreed by Eurozone ministers to translate to an extension of six months.
Loan extension would be for six months says Greek ambassador on brussels
The details of the deal are still emerging.
ITV News Economics Editor Richard Edgar is in Brussels as Eurozone ministers meet with Greek officials over the proposed extension to the bail-out agreement.
Looks like there may be extension for Greece- there's a "short" text which everyone is working on. European official says announcement soon.
Eurozone minsters have agreed with Greece a draft deal that could extend the Greek bailout, a Greek government official told Reuters.
Greece's Prime Minister Alexis Tsipras has said he is 'certain' his country's request for a six-month loan extension, complete with conditions, will be accepted.
Tsipras appeared confident ahead of eurozone crunch talks and told Reuters Greece had "done everything possible" to reach a mutually beneficial solution.
Greece's request for an extension to its loan agreement has been hailed as a "good signal" which could form the basis for further talks, according to German officials.
A spokeswoman for German Chancellor Angela Merkel told a news conference Germany's government was united in its stance and hopeful of reaching an agreement.
She said: "The letter from the Greek finance minister makes clear that Greece remains interested in support from the European Union.
"This letter is a good signal which allows us to continue to negotiate."
Chancellor George Osborne has warned that the ongoing stand-off between eurozone countries and Greece could pose a risk to Britain's economic stability.
Speaking ahead of Greece going into third round talks over how to deal with its debt crisis, Britain's chancellor indicated a solution needed to be found soon before other European countries suffered.
He told Sky News: "What you see now in this stand-off between the eurozone and Greece is the risk of a full-blown crisis which would do real damage to the European economy and is a risk to Britain.
"We need the eurozone to find a common solution and here at home we need to go on working through our economic plan, which has kept us safe."