The eurozone-IMF rescue for Greece: the main points

(BRUSSELS) - The debt rescue agreed on Tuesday to save Greece from defaulting on March 20 and to keep it in the eurozone, is in the form of a complex package potentially worth 237 billion euros in all.

The restructuring of Greek debt, which totals about 350 billion euros, is based on loans from the European Union and International Monetary Fund and on an agreement by private financial institutions to write-off about 107 billion euros' worth of the total.

Here are the main points as published by the Eurogroup of eurozone finance ministers, with extra detail from the Greek finance ministry on Private Sector Involvement (PSI) in the debt writedown:

- The PSI debt write-off by banks, insurance companies and investment funds has been increased from 100 billion euros ($133 billion) or 50 percent of the 200 billion euros of privately held government bonds as envisaged six months ago to 53.5 percent. This rate will reduce the debt owed by Greece to private creditors by 107 billion euros.

This is a record in the history of such debt write-offs but is conditional on private creditors participating on a voluntary basis and many, angry at the losses they have to take, have voiced opposition to the deal. At the same time, it appears that most will go along despite their misgivings.

- The PSI accord is based on a 30-year debt swap entailing variable rates for creditors. Greece will introduce collective action clauses to enforce participation by any reluctant investors.

Greek debt holders will receive new bonds with a face value equivalent to 31.5 percent of the face amount of the debt exchanged, plus 24-month notes from the European Financial Stability Facility, the eurozone's current rescue fund.

Holders will also receive detachable securities linked to gross domestic product growth with a notional amount equal to the face amount of the new bonds.

The interest rate offered on the new securities is 2.0 percent to 2015, 3.0 percent to 2020 and 4.3 percent per year thereafter, until final maturity in 2042.

The new maturities will be governed by English law.

- The public loans are structured as reviewed at an EU summit in October. The loans will total 130 billion euros up to the end of 2014 of which 30 billion euros is in the form of guarantees to encourage the Greek private banks to participate in the debt write-down by helping cover their losses.

This package of loans is in addition to the first rescue funding of 110 billion euros approved in May 2010. The IMF is due to participate in the latest round of lending but to an extent which has yet to be determined.

- The European Central Bank and central banks in the 17 eurozone countries will also participate in helping by making available to Greece, and in advance, any profits to be made on the sale of Greek bonds which the central banking system bought at a big discount on the secondary market at the height of the debt crisis. The amount concerned could total several billion euros.

The interest rate charged on loans already made to Greece is to be reduced, representing a saving for Greece of 1.4 billion euros.

- In exchange, the Greek parliament has approved further budget action totalling 3.3 billion euros in 2012, largely from a cut in minimum pay levels and a reduction of pensions.

- The overall programme is intended to reduce the ratio of Greek debt to gross domestic product from 160 percent to 120.5 percent in 2020, considered to be the maximum level of debt which can be sustained over the long term.