Euro-zone finance ministers have reached a bailout agreement for Greece, giving the debt-ridden nation a massive €130 billion bailout injection.

This is the second bailout for the country in recent times, which is set to receive total loans of £110 billion ($170 billion).

After a series of marathon talks held in Brussels, the ministers decided to bailout the country on the condition that Greece will slash its debt from 160% to 120.5% within the next eight years.

Greece must also accept a permanent EU economic monitoring mission as the country needs to avoid bankruptcy when the maturing loans must be repaid.

Whilst this is good news for the country, which is on the brink of bankruptcy, a report obtained by Reuters news agency suggests that Greece may still need more help if it is to meet its debt reduction target.

In the new deal, Greece must undertake cuts to reduce its debt to 120.5% of GDP by 2020. Private holders of Greek debt will take a loss of 53.5% on the value of their bonds, with real losses expected to be as much as 70%.

The country’s economic management must be subjected to permanent monitoring by Euro-zone experts. Greece will also amend its constitution to give priority to debt repayments over the funding of government services.

Greece has also been told they have to set up a special account which will be managed separately from its main budget. This must always contain enough money to service its debts for the next three months.

Transferring money to Greece

If you are looking to invest in Greece, think carefully about how you plan to transfer money to Greece. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are looking to send money to Greece – which you will inevitably have to do if you are looking to make a property investment – be sure to compare the market before you buy your overseas currency.