The Greek government expressed satisfaction late Friday evening over a decision here by eurozone members to extend the repayment period for Greece's 110-billion-euro EC-ECB-IMF bailout to seven and a half years, as well as a reduction in the interest rate -- from 5.2 percent to 4.2 percent.

"Today's (Friday) decisions are clear proof that the efforts being made by the Greek government are being recognised," Prime Minister George Papandreou stressed after the end of an informal EU summit and a council of eurozone members, while also noting that Athens' seriousness and reliability in implementing a wide-ranging structual reform package is paying off.

"In this effort, we requested the support of our partners in the eurozone," he said, pointing out that the reduction in the interest rate aims to keep the cost of lending manageable for the country. Along those lines, he said the extension and the reduction, by 100 basis points, of the interest rate translates into six billion euros in savings.

Moreover, Papandreou directly referred to the prospect of exploiting state assets and property -- in tandem with structural reforms and privatisations -- in order to reach a goal of 50 billion euros, "something that will lift the debt burden off the back of the people by 20 percent".

The 50-billion-euro target by 2015, cited by representatives of the "troika" last month in Athens, initially generated mini political furor.

Finally, in a bid to allays fears back home, Papandreou also said that decisions taken by eurozone members do not mean new austerity measures.

Euro-17 agree to revamp financial safety net; cut loan rates 

Leaders of the 17 countries sharing the euro agreed to boost the effective lending capacity of the European Financial Statbility Facility to its full 440 billion euros from the current 250 billion euros.

The increase will be achieved by euro zone countries increasing their guarantees for the EFSF's borrowing.

The leaders also agreed that the EFSF, set up in May last year and used to bail out Ireland, would lend money to governments that need it more cheaply for all new loans -- at the same rate as the International Monetary Fund does now.

To help countries already benefitting from EU/IMF aid, the leaders agreed to lower the interest on loans to Greece by 100 basis points and to extend the maturities of the credit to 7.5 years from 3 years.

Ireland, which also has EU/IMF loans, did not secure a lower interest rate for now because it refused to discuss a harmonised corporate tax base for the euro zone.