A deal that imposes 50 percent losses on private sector bondholders means the country's debt burden will be sustainable, Prime Minister George Papandreou said on Thursday.

"The debt is absolutely sustainable now," Papandreou told a news conference after a meeting of eurozone leaders, which reached agreement with private investors on the 50 percent writedown.

Papandreou added a promise that the country would produce no more primary budget deficits from next year.