BRUSSELS -(Dow Jones)- Euro-zone finance ministers early Tuesday agreed an ambitious EUR130 billion rescue deal that will see Greece's private creditors take an even larger loss in order to put the debt-laden country on a sustainable footing, said Jean-Claude Juncker, Luxembourg's prime minister and chairman of the Eurogroup.

Speaking after the conclusion of more than 12 hours of negotiations, Juncker said the agreement will see private bondholders write down at least 53.5% of the face value of their holdings. That goes beyond the 50% agreed at a summit in October.

The agreement involves a debt exchange that will see private investors trade their existing bonds for new bonds offering a coupon of 2% until 2014, 3% between 2015 and 2020, and 4.3% thereafter, Juncker said.

The deal will see Greece's debt as a proportion of gross domestic product lowered to 120.5% by 2020 from over 164% currently.

The Eurosystem's holdings of Greek debt have been exonerated from any losses, Juncker said. Instead, the European Central Bank will disperse any profits it makes on the portfolio of bonds it holds under the Securities Markets Program "in line with the ECB's statutory profit distribution rules". In addition, national central banks in the euro zone will transfer to Greece any profits arising from those Greek bonds they hold as investments.

European Commissioner Olli Rehn said there will also be permanent representatives of the troika--the ECB, International Monetary Fund, European Commission--on the ground in Greece to monitor the program.

-By Ainsley Thomson Geoffrey T Smith, Dow Jones Newswires; 44 20 7842 9318;

ainsley.thomson@dowjones.com

BRUSSELS -(Dow Jones)- French Finance Minister Francois Baroin Tuesday welcomed what it called an "unexpected" final agreement on a second bailout for Greece, saying the deal distributes the burden of the country's rescue between Greece, European institutions and the private sector.

Baroin said Greece will be monitored in implementing reforms attached to the EUR130 billion bailout and will be advised on its recovery effort, but will by no means be placed under "special administration", or guardianship.

"Guardianship is not a word on our vocabulary," he said.

He was speaking after a meeting of euro-zone finance ministers who negotiated for 13 hours a second Greek bailout and private sector participation.

Baroin said the results of the agreement were "unexpected".

"I think no minister entered the meeting (Monday) afternoon expecting a 120.5% of debt/GDP ratio," he said.

The agreement calls for a deeper debt writedown of private sector holdings that should help bring Greece's debt to 120.5% of debt of the gross domestic product by 2020, and the disbursement of a total of EUR130 billion by the European institution and the International Monetary Fund. The haircut for private Greek government debt holders will be a nominal 53.5% on the face value of bonds totalling EUR200 billion.

-By Serena Ruffoni, Dow Jones Newswires; +44 (0) 207 842 9349;

serena.ruffoni@dowjones.com

BRUSSELS -- The success of a second, EUR130 billion aid package for Greece cleared early Tuesday by euro-zone finance ministers depends on the reaction of private-sector investors to changes in the parameters for a "voluntary" swap of their Greek bond holdings, German Finance Minister Wolfgang Schaeuble said.

The finance ministers said that in coming days, Greece will start a debt swap that will ask private bondholders to accept a cut of 53.5% on the face value of their Greek bonds.

"All is still pending what the reaction of the private sector" will be, Schaeuble said at a news briefing after the finance ministers meeting.

Eurogroup finance ministers were gathering here Monday and early Tuesday looking to sign off on the new Greek aid deal to reduce Greece's debt level and allow it to stay in the euro zone.

Schaeuble also said he expects the International Monetary Fund to make a "significant contribution" to the second Greek aid package. He didn't say how high he expects that contribution to be.

-By Bernd Radowitz, Dow Jones Newswires; +49-160-9058 9080;

bernd.radowitz@dowjones.com