Greece appears set to get its second bailout from Europe and the International Monetary Fund after a successful debt swap with creditors.
The deal will help the country eat into its public debt which stands at a massive 160% of its gross domestic product.
The Greek government succeeded in convincing 85% of its private creditors to exchange old bonds for new bounds worth half their value, the ABC reports.
European finance ministers said the conditions are now in place for the €130 bailout to go through.
It is the country's second bailout and Finance Minister Evangelos Venizelos described it as an "exceptional success".
French president Nicolas Sarkozy has declared the Greek problem solved, but the pressure remains on Greece to adhere to strict austerity measures.
IMF to propose new loan
The International Monetary Fund says it will propose a new loan for Greece worth $US36.7 billion as part of the bailout package.
It had already been agreed in principle that the IMF and the eurozone countries would provide the second bailout, provided that certain pre-conditions were met.
One of those was a successful exercise to reduce the debts owed to private creditors, the BBC reports.
Most agreed to the terms offered by Greece, but some are being forced to accept them as a result of what are called collective action clauses recently added by the Greek government.
The fact that some creditors are being compelled to take part means that a key financial agency has decided that a type of insurance against default will now be payable.
