Eurozone leaders have reached agreement over a third Greek bailout after marathon talks in Brussels.
EU chairman Donald Tusk said leaders agreed “in principle” on negotiations for the bailout, “which in other words means continued support for Greece”.
Prime Minister Alexis Tsipras said that after a “tough battle”, Greece had secured a “growth package” of €35bn (£25bn), and won debt restructuring.
Greece will now have to pass reforms demanded by the eurozone by Wednesday.
“There will not be a ‘Grexit’,” said European Commission head Jean-Claude Juncker, referring to the widespread fear that if there had been no deal, Greece would have had to leave the eurozone.
Mr Tsipras also said he had the “belief and the hope that… the possibility of ‘Grexit’ is in the past”.
“The deal is difficult but we averted the pursuit to move state assets abroad,” he said. “We averted the plan for a financial strangulation and for the collapse of the banking system.”
Jeroen Dijsselbloem, the head of the eurozone group of finance ministers, said the agreement included a €50bn Greece-based fund that will privatise or manage Greek assets. Out of that €50bn, €25bn would be used to recapitalise Greek banks, he said.
Greek banks have been closed for two weeks, with withdrawals at cash machines limited to €60 per day. The economy has been put under increasing strain, with some businesses closing and other struggling to pay suppliers.
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There have been mixed views on the streets of Athens to the new agreement
Eurozone finance ministers are due to meet later on Monday to discuss providing “bridge financing” that would cover Greece’s short-term needs.
Parliaments in several eurozone states have to approve any new bailout.
“The road will be long, and judging by the negotiations tonight, difficult,” German Chancellor Angela Merkel said on Monday morning.
French President Francois Hollande said the agreement had allowed Europe to “preserve integrity and solidarity”.
“We also had to show that Europe is capable of solving a crisis that has menaced the eurozone for several years,” he said.
Eurozone leaders had been meeting in Brussels for 17 hours, with talks continuing through the night.
During the talks, reports emerged that Greece was holding out over the proposed role of the International Monetary Fund (IMF) in a new programme, and over the fund to hold Greek assets.
Credit: BBC.com
