EU officials have described a new Greek bailout package worth €10.3bn (£7.9bn) as a "major breakthrough" - days after the country approved painful tax increases and budget cuts.
The deal also includes the prospect of debt relief for Athens in the form of lower interest rates and an extension on loan repayment deadlines if it is needed in the future.
That particular measure was seen as crucial by the International Monetary Fund, which had expressed concern that Greece's debt burden was making its finances unsustainable.
Forecasts suggest the country's debt load is set to exceed €333bn (£254bn) this year - a sum which is 180% of its yearly economic output.
However, any debt relief agreed by Eurozone's 19 finance ministers would not result in a cut to the amount of money Greece owes.
Greek finance minister Euclid Tsakalotos said the fresh bailout agreement, which came after 11 hours of talks in Brussels, delivered "some ground for optimism" that the country's vicious circle of recessions could be broken, paving the way for much-needed investment.
On Twitter, EU president Donald Tusk described the deal as "a strong message of stability for Greece, Europe and the global economy".
Depending on the response from other European institutions, Greece could receive an initial instalment of €7.5bn (£5.7bn) next month, with the rest of the cash to follow over the summer.
The IMF's continued participation in the latest phase of the Greek bailout programme will depend on the approval of the fund's board in Washington.
Germany has strongly opposed debt relief being offered to Greece, amid concerns it could create a "moral hazard" and encourage other indebted Eurozone nations to abandon austerity reforms.
But despite Berlin's reservations, finance ministers from other countries have praised Athens for making "considerable efforts" to reform under left-wing prime minister Alexis Tsipras.
"Greece needs room to breathe, it needs certainty," French finance minister Michel Sapin said.
"This deal is first and foremost a declaration of confidence in today's Greece."
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