Eurogroup agrees €8.5bn deal for Greece

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Eurogroup president Jeroen Dijsselbloem (Source: Getty)

Eurozone finance ministers have agreed to release another tranche of loans worth €8.5bn (£7.4bn) for Greece, ending the possibility that the country would default on €7bn in loan repayments due next month.

Read more: Greece returns to recession after bailout battle dragged on growth

The third tranche of the €86bn bailout will cover current financing needs, arrears clearing, and the possible building up of a cash buffer.

The Eurogroup also stated that it is ready to consider the extension of the maturities and further deferral of interest and amortisation on loans to Greece by up to 15 years.

Read more: Cut red tape to unleash innovation and fight populists says IMF's Lagarde

International Monetary Fund (IMF) chief Christine Lagarde said she will propose a precautionary 14-month standby agreement of $2bn for Greece.