French president Nicolas Sarkozy has declared the debt crisis gripping Greece as "solved" following a successful debt swap.
The deal will help Greece eat into its mountainous public debt, which currently stands at a massive 160 per cent of its gross domestic product.
It averts the immediate risk of an uncontrolled default and clears the way for a new bailout.
"I would like to say how happy I am that a solution to the Greek crisis, which has weighed on the economic and financial situation in Europe and the world for months, has been found," Mr Sarkozy said.
"Today the problem is solved. A page in the financial crisis is turning."
The key developments:
Deal paves way for urgent second bailout to save Greece from bankruptcy
Nearly 84 per cent of its private creditors joined the landmark debt swap
Greece is seven billion euros ($8.7 billion) short of a targeted debt cut of 107 billion euros ($133 billion)