GREECE'S second bailout package was authorised yesterday as lenders said Athens can make its debt sustainable if the country sticks firmly to agreed policies until 2030.
The first instalment of the initial €39.4bn loan will now be disbursed to Greece in several tranches.
An analysis, prepared by the European Commission, the ECB and the International Monetary Fund for eurozone finance ministers, shows that after the debt swap, Greek debt could fall to 116.5pc of gross domestic product in 2020 and 88pc in 2030.
"Results show that the programme can place Greek debt on a sustainable trajectory," said the analysis, marked strictly confidential. However, it also warned that the debt trajectory was extremely sensitive and the programme was "accident prone".
Separate reports published yesterday showed that energy prices drove up the cost of living in the eurozone last month.
Late Tuesday, German Chancellor Angela Merkel said European efforts to resolve the debt crisis are making progress but warned that "imbalances" in euro-area economies show the task is far from complete.
"We've come a good way along the mountain path, but we're not completely over the mountain," Ms Merkel said in Rome after talks with Italian Prime Minister Mario Montio.
"I suspect that in the next few years there will continue to be new mountains. There won't be a celebratory event in which we say we're over the mountain and now we can sit among the trees and say that we've done it."
Mr Monti, asked about the possibility that he could take over from Luxembourg Prime Minister Jean-Claude Juncker as head of the group of euro finance ministers, suggested he was too busy.
"Do you think an Italian prime minister has time for other jobs?" he said.