Europe’s leaders on Thursday came to agreement on a deal with EU banks to write off half of Greece’s bonds in a plan to reduce the country’s heavy debt load.

The agreement, which was reached at the summit in Brussels, will also include a new €130bn bailout package between the IMF and the EU.

The combined action is believed to lower the nation’s GDP to 120 percent from the current 160 percent, EU president Herman Van Rompuy said.

According to the statement the eurozone members would contribute up to €30bn to the Private Sector Involvement.