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Antonio
20 February 2012 Last updated at 22:42 ET
Athens needs the funds to avoid bankruptcy next month, when maturing loans must be repaid.
In return, Greece will undertake to reduce its debts to no more than 121% of its GDP by 2020.
After five straight years of recession, Greece's debts currently amounts to more than 160% of its Gross Domestic Product (GDP).
The agreement would mean deeper cuts in public spending that Greece had planned to, the BBC's Stephen Evans in Brussels says.
It also means that lender to Athens would get less of their money back, our correspondent adds.
The euro rose to $1.3266 from $1.3185 on reports of the deal.
Elections ahead
Eurozone leaders and the IMF said in October that Greek debt should be reduced to a more sustainable level of 120% of GDP by 2020.
Successive rounds of austerity measures, demanded by Greece's international creditors have failed to restore growth and have provoked clashes between protesters and police.
The Greek government fell last year after ex-Prime Minister George Papandreou called for a referendum on the eurozone rescue package.
He was replaced by Lucas Papademos, an unelected technocrat who is expected to lead Greece until parliamentary elections in April.
Measures passed by parliament last week set out 3.3bn euros' worth of cuts to salaries and pensions, and health and defence spending.
Eurozone finance ministers have reached agreement on a vital second bailout for Greece, officials involved in the negotiations say.
The deal, which came after late-night talks in Brussels, is said to be worth 130bn euros (£110bn; $170bn).Athens needs the funds to avoid bankruptcy next month, when maturing loans must be repaid.
In return, Greece will undertake to reduce its debts to no more than 121% of its GDP by 2020.
After five straight years of recession, Greece's debts currently amounts to more than 160% of its Gross Domestic Product (GDP).
The agreement would mean deeper cuts in public spending that Greece had planned to, the BBC's Stephen Evans in Brussels says.
It also means that lender to Athens would get less of their money back, our correspondent adds.
The euro rose to $1.3266 from $1.3185 on reports of the deal.
Elections ahead
Eurozone leaders and the IMF said in October that Greek debt should be reduced to a more sustainable level of 120% of GDP by 2020.
Successive rounds of austerity measures, demanded by Greece's international creditors have failed to restore growth and have provoked clashes between protesters and police.
The Greek government fell last year after ex-Prime Minister George Papandreou called for a referendum on the eurozone rescue package.
He was replaced by Lucas Papademos, an unelected technocrat who is expected to lead Greece until parliamentary elections in April.
Measures passed by parliament last week set out 3.3bn euros' worth of cuts to salaries and pensions, and health and defence spending.
21 Feb, 2012
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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/world-europe-17109044
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