By Alysha Bohanon
Creditors agreed to a deal that would restructure Greek government bonds in the biggest debt write-down in history, a necessary step towards a second bailout to aid the country's economic crisis, news sources report.
The agreement will shave about $138 billion off Greece's $487 billion debt load, the Philadelphia Inquirer reported.
The deal needed to be made for the country to qualify for a €130 billion bailout program from the European Union and International Monetary Fund, according to CNN.
The country said 83.5 percent of private investors agreed to the bond swap, which includes taking a cut of more than half the face value of their investments and accepting softer repayment terms for Greece, according to the Philadelphia Inquirer.
The move is risky for the bondholders: investors could see losses of up to 75 percent. But the agreement was necessary to avoid default, according to CNN.
Investors who did not agree to the deal will be forced into it, the Philadelphia Inquirer reported.
The deal was the final hurdle to cross before Greece's bailout could be approved. European finance officials could approve the bailout as early as Friday, the Philadelphia Inquirer reported.