DHAKA: Eurozone finance ministers have agreed a ‘major breakthrough’ that is to extend further bailout loans to Greece as well as debt relief.

After late-night talks in Brussels, the ministers agreed to unlock 10.3bn Euros in new loans.

The move came two days after the Greek parliament approved another round of spending cuts and tax increases demanded by international creditors, BBC reports on Wednesday (May 25).

The ministers also said debt relief would be eventually offered to Greece.

This had been a key demand from the International Monetary Fund (IMF), which says public debt is unsustainable at current levels of about 180% of Greece's gross domestic product.

The deal was announced after 11 hours of talks between the 19 eurozone ministers - known as the Eurogroup.

‘We achieved a major breakthrough on Greece which enables us to enter a new phase in the Greek financial assistance programme,’ Eurogroup President Jeroen Dijsselbloem said.

He said a package of debt measures would be ‘phased in progressively’, adding that he was ‘glad to confirm’ the IMF would now stay on board.

BDST: 0944 HRS, May 25, 2016
SAS/AKA