A senior Eurozone official says private holders of Greece's debts have agreed to more losses than expected.

Including a face value of 53.5 percent on their bonds.

The investors, mostly banks and investment funds, have agreed to swap their bonds for ones with longer maturities and lower interest rates.

The Prime Minister of Lexembourg says the interest rates would start at 2 percent and rise to 4.3 percent.

The deal that was agreed today is a critical part of lowereing Greece's debt, so it can eventually be paid off.