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Greece will avoid bankruptcy next month following its second bailout.There's good news for the eurozone this week after finance ministers finally agreed a second bailout for Greece equalling £110bn, which will help the country avoid bankruptcy next month when maturing loans are to be repaid.

However, Greece has stern measures it must meet in return if it is to reduce its debts to 120.5% of its GDP by 2020. After five years of recession, Greece's debt currently amounts to more than 160% of its GDP. Greece must amend its constitution to give priority to debt repayments over the funding of government services and must also have a special account that will always hold enough money to service its debts for three months.

The agreed deal also means that private holders of Greek debt will be taking losses of over 50% on the value of their bonds, and the final loss to investors is thought to be as much as 70%.

Greek Prime Minister Lucas Papademos is said to be "very happy" with the agreement, which the Greek parliament is expected to vote on tomorrow.

How the Greek people will respond is another matter with measures passed last week which saw cuts to salaries, pensions, health and defence leading to renewed protests. Previous austerity measures have so far failed to restore growth  as rather than invest in the country they have been used to repay banks. Many see the anger of the Greek people as inevitable considering the harsh times they are facing with no end in sight.

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