Greek economy crisis: Eurozone ministers seek end to Greece bailout odyssey

After €300 billion in aid, Greece will exit its bailout on shaky ground

The finance ministers of the 19 European Union countries reached the compromise after a day of marathon talks in Luxembourg early on June 22.

Shut out of debt markets in 2010, Greece is set to exit its worldwide bailout program formally in August.

"It is a deal which reflects the moral duty of our partners in response to the sacrifices of Greek people over the past eight years, so that the euro zone remains undivided", Greek Prime Minister Alexis Tsipras said during a meeting here with President Prokopis Pavlopoulos to formally brief him on the outcome of Thursday's talks in Luxembourg.

The key element of the debt relief is an extension of maturities and grace periods on 96.9 billion euros (84.8 billion pounds) of loans granted to Greece under the second bailout by 10 years to smooth out any sharp debt servicing peaks for decades ahead.

It also got another injection of 15 billion euros (£13 billion).

Greece "has fulfilled its obligations, and now the Eurogroup must keep its promises", MP Kindler said, calling for "substantial debt relief" for the troubled Mediterranean nation.

European Economic and Financial Affairs Commissioner Pierre Moscovici spoke of a "historical moment for Greece" and said a new chapter was beginning for the country.

They also made a decision to have the International Monetary Fund participate in a system to monitor the country's finances, even after the bailout program ends.

Finance Ministers from the 19 countries that use the single currency are seeking to agree on debt relief and a sizeable cash cushion for Greece that will reassure financial markets on the ability of Athens to stand on its own.

Greece's post-bailout future may not feel much different from the present, as it will include binding targets, compliance reviews, and even disbursements, according to an internal memo circulated among its creditors. Private creditors cut the value of their holdings of Greek government bonds by more than half in 2012.

"There is no doubt in our mind that Greece will be in a position to access financial markets", IMF Managing Director Christine Lagarde said, adding that for the medium term, the agreed measures would ensure Greek debt remained sustainable.

Mr Tsakalotos said the deal will allow Greece to tap markets "very soon" at manageable interest rates, although the precise timing is still unclear.

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