Eurozone finance ministers reached a vital deal with Greece on Wednesday to start debt relief for Athens as demanded by the International Monetary Fund, and to unlock 10.3 billion euros ($12 billion) in bailout cash.
The US-based International Monetary Fund had said that easing Greece's huge debt burden was a condition for its continued participation in the bailout programme, despite opposition from Germany to giving Athens more favours.
The 19 ministers from the countries that use the euro met two days after Greek lawmakers passed yet another round of spending cuts and tax hikes demanded by its creditors.
After hammering out a deal at late night talks in Brussels, Eurogroup chief and Dutch Finance Minister Jeroen Dijsselbloem said the ministers had achieved a "major breakthrough".
"This is an important moment in the long Greek programme, an important moment for all of us, since last summer when we had a major crisis of confidence between us," Dijsselbloem told a press conference.
Greece urgently needs the next tranche of bailout money to repay big loans to the European Central Bank (ECB) and IMF in July, and has already fallen behind in paying for everyday government duties and wages.
Dijsselbloem said the ministers had agreed to unlock the 10.3 billion euros -- the windfall for completing the first formal review of its 86 billion euro bailout programme agreed last July.
Greece's creditors would pay a first 7.5 billion tranche in June and the rest in a series of later disbursements.
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