Eurogroup president Jean-Claude Junker, who announced the negotiations were eventually successful, said that this general agreement included public aid and an unprecedented write-off of Greece’s debt towards banks. Athens will receive 130 billion Euro in loans by the end of 2014, after it had received a 110 billion Euro worth of rescue package in May 2010. Most of that money will be used to finance the bond swap and to stabilize the banking system. On the other hand, Greece’s private lenders will incur a loss of 53.3% in the value of the Greek bonds they hold, which is tantamount to a debt write-off worth 107 billion Euro for Athens, an unprecedented amount in the entire history of mankind. The decision made in Brussels is a lifesaver for that country, which in less than a month, on March 20th, has to pay back almost 15 billion Euro.

In exchange for aid, the Greek government has to implement very strict measures, which will be closely monitored, and are strongly opposed by the population. The recent austerity plan has sparked off widespread violent protests. The plan provides for cuts in the minimum wage and ceilings being set on pensions. Eventually, the rescue plan has to trigger the reduction in Greece’s debt down to 120% of the GDP by 2020, as compared to 160% it has now.

Some economists, however, are skeptical when it comes to Greece’s ability to pay back a much lower debt. They doubt that the second bailout plan spells an end to the Greek crisis, and say that the country will need even more money, or even be forced to bail out of the Eurozone, being unable to implement the reforms it has promised. They also fear that the austerity measures will deepen the recession it has been struggling with for the last few years. IMF managing director Christine Lagarde said her institution would decide in March the amount it would contribute to the public bailout package for Greece.