BRUSSELS -- An EU diplomat says that an agreement has been reached to give Greece $170 billion more in bailout loans and bring its debt down to 120.5 percent of GDP by 2020.
The official, who spoke on condition of anonymity, said the details were still being worked out in the early hours of Tuesday, more than 12 hours after discussions began.
A debt level of 120.5 percent of GDP is considered close to the maximum sustainable amount for Greece.
Greece desperately needs another rescue package if it is to avoid a calamitous default next month when another bond issue comes due.
EU economic affairs commissioner Olli Rehn says Greece's compliance with the terms of a new bailout will be ensured by a separate account containing enough money to service its debt for three months.
That close monitoring was demanded by some members of the eurozone who are frustrated that Greece has not always enacted painful reforms and budget cuts on time.
The account is part of a deal agreed to in the early hours of Tuesday to give Greece another $170 billion in rescue funds to avoid a default next month.
(Associated Press)