Greece gets four-month loan extension, averts bankruptcy

BRUSSELS, Feb. 21 (UPI) -- Eurozone officials agreed to give Greece a four-month loan extension, allowing the country more time to repay a $273 billion bailout loan and possibly avoid a bankruptcy that would cause further economic crisis.

The 11th-hour deal continues the terms of the November 2012 bailout that gave Greece funds in exchange for sharp tax hikes and budget cuts. The country can only receive more money from the bailout if it meets certain conditions, including making labor laws more flexible and uncovering corruption.

The country must come up with a list of reforms that are acceptable by its creditors, including the European Central Bank and the International Monetary Fund, by Monday. A final agreement is expected to be hammered out by the end of April, the Council of the European Union said.

"If our list of reforms is not backed by the institutions this agreement is dead and buried," Greek finance minister Yanis Varoufakis said.

Without the extension, Greece runs the risk of defaulting on the 240 billion euro bailout. This means Greek banks would be unable to borrow from the European Central Bank, forcing Greece out of the eurozone and upending Europe's financial foundation.

Prime Minister Alexis Tsipras said the agreement was an "important success" but more work needs to be done.

"We won a battle, but not the war,"Tsipras said. "The difficulties lie ahead of us."