ATHENS, GREECE (Catholic Online) - Despite the potential losses, the Finance Ministry said on Friday that 85 percent of the private bondholders have also agreed to the deal. 

With this deal, the Greek government can now get a second bailout from the European Union, European Central bank and the International Monetary Fund. 

Once the Bank of Greece approves the deal, the government will "accept the consents received and amend the terms of all Greek law governed bonds, including those not tendered for exchange."

Greek Finance Minister, Evangelos Venizelos said, "on behalf of the republic, I wish to express my appreciation to all of our creditors who have supported our ambitious program of reform and adjustment and who have shared the sacrifices of the Greek people in this historic endeavor." 

He continued, "Greece will continue implementing the measures needed to achieve the fiscal adjustments and structural reforms to which it has committed, and that will return Greece to a path of sustainable growth."

The deal will allow Greece to wipe out large portions of its debt. 

It is hoped the deal will reduce the country's debt by $140 billion, with private bondholders accepting a loss of 53.5 percent in exchange for new bonds with better payment terms. 

The news has rallied world markets, particularly in Europe, where the good news was especially welcome. 

Josef Ackerman, Chairman of the International Institute of Finance said, "The very strong and positive result provides a major opportunity now for Greece to move ahead with its economic reform program, while strengthening the euro area's ability to create an economic environment of stability and growth."

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