Eurozone Approves Greek Bailout Deal

A European Union flag flies in front of the Parthenon temple in Athens

The eurozone nations have officially approved a second, 130-billion euro ($170 billion) bailout package for Greece.

Luxembourg Prime Minister Jean-Claude Juncker, who heads the Eurogroup -- the panel of eurozone finance ministers -- announced on March 14 that a "first installment" of 39.4 billion euros ($51.5 billion) would be disbursed to Athens "in several tranches."

The 130-billion-euro aid package comes on top of a 110-billion-euro international loan to Greece which was approved in 2010.

Most of the money from the second bailout is expected to be used by the Greek government to recapitalize its banks and reduce its budget deficit.

Parts of the new bailout were cleared last week, when private lenders accepted losses of some 105 billion euros on their Greek debt holdings.

With reporting by dpa and AFP