Eurozone finance ministers say they have reached a "major breakthrough" in negotiating the latest debt relief deal for Greece after hours of discussion in Brussels Tuesday night.
The International Monetary Fund (IMF) had demanded a reduction in Greece's debt burden as a condition of further IMF bailout funds.
Greece will receive the first part of an $11.4 billion bailout in June, following EU approval of its recent reform efforts.
This is the latest bailout in a six-year saga of economic troubles which have led to Greece's current public debt of about 180 percent of gross domestic product.
The difficult political agreement was met with resistance, particularly by Eurozone powerhouse Germany which, having continuously called for more austerity, claims this bailout was not necessary.
But Greece urgently needs the first tranche of $8.4 billion to pay off loans to the European Central bank and the IMF by July.