Second bailout: Eurozone approves $172 billion Greek bailout plan

 Eurozone finance ministers have ended months of uncertainty and averted an imminent debt default by Greece by approving a second bailout deal for the debt-laden country.

"After a meeting of at least 13 hours, we have reached a far-reaching agreement on Greece's new program and private sector involvement (PSI) that will lead to a significant debt reduction for Greece," Eurogroup chief Jean-Claude Juncker said at a press conference early Tuesday after a prolonged meeting of eurozone finance ministers.

The bailout plan, which is estimated to amount to 130 billion euros ($172 billion), doled out in tranches until 2014, was aimed at bringing down Greece's debt-to-GDP ratio to 120.5 percent by 2020 from the current 160 percent, Juncker told reporters.

"Greece will launch a bond exchange offer in the coming days. And, given the balanced agreement reached with the creditor group led by the International Institute of Finance managing director (Charles Dallara) and the fact that the package delivers debt sustainability for Greece, we expect a high participation rate," Xinhua quoted him as saying.

This second bailout package, designed by the troika of the International Monetary Fund (IMF), the European Union and the European Central Bank, will enable Greece to repay bonds totalling 14.5 billion euros ($19.2 billion) which come due March 20, avoiding a default and a potential exit from the European single currency zone.

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