Eurozone finance ministers and the International Monetary Fund (IMF) agreed Tuesday to lower Greece's debt and put the financially troubled country on the way to receiving about $56 billion in bailout funding.

After a marathon closed-door meeting that lasted over 10 hours, the ministers and the IMF agreed to disburse 43.7 billion euros (some $56 billion) in badly needed bailout funding promised in a previously agreed rescue package.

Greece's international creditors also agreed to cut the country's debt- to-GDP ratio to 124 percent by 2020 and below 110 percent by 2022 via such measures as lowering their interest rates and providing a 15-year extension on the maturity of Greek debt.

"I'm pleased to announce that today we reached a political agreement on the next disbursement to Greece. I admit, however, that this has been a very difficult deal," Eurogroup President Jean-Claude Juncker told reporters.

"Let me first say that this is not just about money. This is the promise of a better future for the Greek people and for the euro area as a whole, a break from the era of missed targets and loose implementation towards a new paradigm of steadfast reform momentum, declining debt ratios and a return to growth," Juncker said.

European Central Bank President Mario Draghi said the new deal "will reduce uncertainty, and increase confidence in Europe."

In Athens, Prime Minister Antonis Samaras hailed the agreement as a great victory.

"We Greeks fought together and tomorrow a new day begins for all of us," Samaras said.

Without the agreement, Greece's debt was forecast to peak at around 190 percent of GDP in the coming two years, and likely to stay around 140 percent of GDP in 2020.

The Eurogroup and the IMF were at odds on how to keep Greece solvent in the long term, and the disagreement stalled the expected release of a new tranche of bailout money.

To convince its EU partners and international creditors of its determination to put its finances back on track, the Greek parliament earlier this month passed an austerity budget for 2013 and a structural reform package.

The IMF argued that Greek debt must be reduced to 120 percent of GDP by 2020 and a "haircut" on debt held by public creditors would be an unavoidable option. However, the eurozone, especially Germany and its northern European allies, rejected the idea of reducing the value of the Greek debt they are holding.

The eurozone is to formally decide on the disbursement of the next tranche of bailout money for Greece by December 13, subject to the completion of national procedures and a review of the outcome of a possible debt buy-back operation by Greece.

"We will make the final decision about the payment of the tranche after the conclusion or result of a possible debt buy-back program," German Finance Minister Wolfgang Schaeuble told reporters.

"When Greece has achieved, or is set to achieve, a primary surplus and fulfilled all of its conditions, we will, if needed, consider further measures for the reduction of the total debt," he said.

The prospect of Greece receiving a new installment of bailout money cheered politicians fearing the possibility of an Greek exit from the eurozone and investors who have been wary of the evolving euro debt crisis.

Benchmark indexes in Hong Kong, Japan, South Korea and Australia all rose after the announcement of the Greek deal, and the Eurogroup's single currency also rose against the dollar.

Greece has so far received about 150 billion euros ($195 billion ) in rescue loans from the troika of the European Central Bank, the IMF and the European Commission, which have promised a total of 240 billion euros ($310 billion ) in bailout fund for the financially crippled country.

Greece, now in its fifth consecutive year of recession, has seen constant protests across the country following rounds of austerity measures this year.

Greece's economic situation will still be difficult in 2013 but the country's top banker said he expected the Greek economy to return to positive ground in 2014.