On Thursday, a five-year agreement between Greece and foreign lenders has been signed which is due to be passed by the Greek Parliament. Greece’s insolvency had impacted the world drastically. Many foreign lenders have been finding ways of treating it but it seems like the problem has been sorted out.

Last week, the unexpected behavior of the European Union, European Central Bank and International Monetary Fund made the financial condition more severe. It has been told that the three financial bodies withheld the next installment of $17 billion in emergency aid to Greece as it was felt that the lack of austerity measures will make it difficult to achieve the goals.

Following the incident, Greece’s Prime Minister, George Papandreou has agreed to sign an austerity plan with the foreign lenders. During a news conference in Athens, it was told by the Finance Minister, Evangelos Venizelos that the revenue for the Greece will come from the increased tax. It has been revealed that the government has imposed an increased the rates of tax and the prices of oil upon the self-employed Greek workers.

Mr. Venizelos further informed that as per the agreement, the Greek government’s key goals will be to regain the country’s credibility, to lay the foundations for more effective negotiations aimed at tackling the fiscal problems and reducing the debt.