The extension will allow Greece to negotiate a follow-up arrangement with creditors.
“The Greek authorities have expressed their strong commitment to a broader and deeper structural reform process aimed at durably improving growth and employment prospects, ensuring stability and resilience of the financial sector and enhancing social fairness,” the Eurogroup said in a statement.
Dutch finance minister Jeroen Dijsselbloem, head of the Eurogroup, said that Athens had pledged to honor all its debts.
“This is a very positive outcome,” Jeroen Dijsselbloem told a news conference on Friday night.
“I think tonight was a first step in this process of rebuilding trust. As you know trust leaves quicker than it comes. Tonight was a very important, I think, step in that process,” he added.
Greece had agreed to present an initial list of reform measures by February 23, Jeroen Dijsselbloem said.
Athens welcomed the deal, which a Greek government official said gave it time to negotiate a “new deal”.
“Greece has turned a page,” the official said.
“We have avoided recessionary measures.”
Greece had been seeking a six-month extension of the bailout but the Eurogroup opted for four months.
The euro gained against the US dollar on February 20 following the announcement, adding 0.3% to $1.1403, while the Dow Jones industrial average and S&P 500 struck new intraday highs.
The agreement removes the immediate risk of Greece running out of money next month.
The new deal also provides a breathing space for the new Greek government to try to negotiate longer-term debt relief with its EU creditors.
nrB_D-JULm8Three Indian nationals have been arrested and charged over the killing of Sikh separatist leader…
President Joe Biden has urged pro-Palestinian protesters on university campuses to uphold the rule of…
Blue Ivy Carter has joined the voice cast of The Lion King prequel Mufasa: The…
At least five people, including a four-month-old baby, have been killed after dozens of tornadoes…
Harvey Weinstein has been hospitalized just days after his 2020 rape conviction in New York…
Hamas has published a video showing the first proof of life of US and Israeli…