Greece will avoid defaulting on its mountain of debt after members of the eurozone reached a deal Tuesday to provide the nation with another big bailout, this time for $170 billion.

"This will give Greece the time needed to follow a credible path of fiscal consolidation and structural reforms and allow a return to sustainable growth and employment, while preserving the financial stability in Greece and in the euro area as a whole," explained Jean-Claude Juncker, the prime minister of Luxembourg, who also chairs the eurozone finance ministers' meetings.

Prior to the agreement, the nation was facing the prospect of a default next month and possibly being forced from the eurozone.

"It's no exaggeration to say that today is a historic day for the Greek economy," Greek Premier Lucas Papademos said.

But with the latest bailout deal, Greece's creditors will have more substantial losses than previously expected. In the end, they'll be paid back about 25 cents on each dollar they invested.

Meanwhile, some economists still question whether Greece will be able to pay the reduced debt.