(NEW YORK) — Greece will not be defaulting on its loans anytime soon.
After weeks of difficult talks, Greece’s European partners and the International Monetary Fund agreed on Tuesday to release a bailout payment. The proposal allows the country to reduce its oppressive level of debts, and the new loan makes it more likely that Greece will stay in the single currency eurozone.
The interest rate Greece will be charged will be lowered. The country will also be given more time to pay its loans.
Under the terms of the agreement, the Greek government will receive loan payments of about $57 billion to be paid in four installments. But Greece must stick to its deficit targets to qualify for the bailout.
Copyright 2012 ABC News Radio
Erin McClam, CNN
Paul Menser, BizMojo Idaho
Susan Scutti, CNN
Julia Horowitz, CNN