Greece's 86-billion-euro programme was agreed in 2015 after six contentious months of negotiation and is set to end this summer, bringing the level of assistance received by Athens to 273 billion euros since 2010.
"The accepted criteria for all sides is that this solution be convincing for markets and embed the creditworthiness of our country - the final act in restoring the credibility of Greece to be able to plan for the next day like any ordinary country", Tzanakopoulos told a news briefing.
European Economic and Financial Affairs Commissioner Pierre Moscovici spoke of a "historical moment for Greece" and said a new chapter was beginning for the country. It will also get a 10-year extension for the repayment of its European Financial Stability Facility (EFSF) loans and an additional grace period of 10 years on interest payments.
"We will ensure that the pressure to implement further reforms remains strong.in the medium and long term", said Austrian Finance Minister Hartwig Loger.
But "to make this worthwhile we have to make sure that the Greek people must quickly see concrete results. they need to feel the change in their own pockets", he added.
"Greek debt is sustainable going forward", Eurogroup President Mario Centeno told journalists.
Tsakalotos' predecessor in the government, maverick economist Yanis Varoufakis, was more scathing in his assessment.
The money will come from profits made by euro zone central banks on their holdings of Greek bonds that will gradually mature over the next four years.
"This is a very tight programme".
A dedicated section in the long list of commitments that Greece will be asked to undertake for after its bailout includes sales and leases of state assets, from the Athens International Airport and the country's gas-grid operator Desfa by the end of this year, to Hellenic Petroleum by mid-2019, and Egnatia Motorway and the regional ports of Alexandroupoli and Kavala by end-2019.
The European Commission has already specified that Greece will remain under fiscal supervision until it repays 75 percent of its loans. "For the long term we are concerned, we have reservations", said IMF Managing Director Christine Lagarde.
The reform-pushing International Monetary Fund played an active role in the two first Greek bailouts, but took only an observer role in the third in the belief that 's debt pile was unsustainable in the long term.