A breakthrough has been made on key elements of reforms required to secure further loans to Greece as part of its bailout agreement with its eurozone creditors. 

The announcement was made by Jeroen Dijsselbloem, head of the eurozone finance ministers' group and Dutch finance minister, during a news conference in Valletta, following an informal eurogroup meeting held at the Grand Master's Palace.

Under the terms of this agreement, Greece will implement a series of measures worth 2 per cent of its gross domestic product in 2019 and 2020.

"We have an agreement on the overarching elements of policy, in terms of size, timings and sequencing of reforms, and on that basis further work will continue in the coming days," Mr Dijsselbloem said. 

The breakthrough will also pave the way for a mission of negotiators to return to Greece "as soon as possible,"  though no specific timeframes have been set. This mission is crucial for negotiators to reach a technical deal, called a staff level agreement. This agreement would then need the political backing of eurozone ministers, before Greece could get further loans. 

Mr Dijsselbloem remarked that “significant progress” had been made during the Valletta talks, which would ensure that the debt-ridden country avoids going bankrupt this summer.

Video: Chris Sant Fournier

“The big blocks have now been sorted out and that should allow us to speed up and go for the final stretch,” he said during the news conference.

Greece is seeking to get an agreement so its next batch of bailout funds can be released so it can make upcoming debt repayments, avoid bankruptcy and a possible exit from the single currency bloc.

Without the loan, Greece would struggle to make a debt payment in July, raising anew the prospect of default. The last time Greece faced potential bankruptcy was in July 2015, when its government eventually agreed to a three-year bailout that could amount to €86 billion.

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