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To reach this, the meeting agreed on a raft of measures. These include:

• A cut of 100 basis points on the interest rate charged to Greece by other eurozone member states — excluding those that are also receiving bailouts.

• A 15-year extension of the maturities of loans from other countries and the eurozone's bailout fund, the European Financial Stability Facility, and a deferral of interest payments by Greece on EFSF loans by 10 years.

• A program whereby Greece could buy back some of its debt from private investors. The details of this program are still to be agreed on by the eurogroup and IMF.

The deal still requires the authorization of a number of parliaments in Europe, including Germany’s, where patience with repeated Greek rescues has been running low.

However, Rainer Bruederle, the caucus leader of German’s Free Democrats, the junior coalition partner, said he expects broad approval this time on Thursday.

“Conditions have been put together which maintain a tough mechanism toward Greece but still save us from a collapse of the Greek economy possibly having consequences that could pull down the whole of Europe,” he said.

Greek newspapers were divided on whether the agreement would give the country breathing space to right its economy or keep it trapped in years of recession and austerity.

The broad-circulation Ta Nea daily argued in an editorial that the deal affords Greece “a last chance” to escape the crisis.

The left-wing Efimerida ton Syntakton newspaper carried the headline “A poisonous (loan) installment,” arguing that the agreement “condemns Greek society to a slow death.”

Pan Pylas reported from London. Geir Moulson in Berlin contributed to this article.