Today, Greece reached agreement with the International Monetary Fund (IMF), the European Commission (EC), and the European Central Bank (ECB) on "a focused program to stabilize its economy, become more competitive, and restore market confidence." The centerpiece of the program is a €110 billion ($145 billion) financing package, "unanimously agreed" to by Euro area ministers today in Brussels. Euro area members have pledged a total of €80 billion ($105 billion) in bilateral loans, centrally pooled by the European Commission under the conditions set out in their April 11 statement, with the first disbursement of bailout money available before several Greek government obligations fall due May 19. In addition, the IMF has agreed to provide an additional €30 billion ($40 billion) in support under a three-year Stand-By Arrangement, IMF’s "standard lending instrument."
As part of the financial package, the Greek government has also agreed to a variety of "new budget-reduction measures," and additional austerity measures, including new taxes and reductions in public sector salaries and pensions.
EC President Juan-Manual Barroso and the ECB both "welcomed" the Greek support program, noting that such financial assistance "will be decisive to help Greece bring its economy back on track and preserve the stability of the Euro area."
Update: On Monday morning, the ECB announced that it "has decided to suspend the application of the minimum credit rating threshold in the collateral eligibility requirements for the purposes of the Eurosystem’s credit operations in the case of marketable debt instruments issued or guaranteed by the Greek government." The "suspension applies to all outstanding and new marketable debt instruments issued or guaranteed by the Greek government," regardless of their credit rating.