European Commission President Jose Manuel Barroso on Tuesday hailed the new Greek bailout deal struck by eurozone finance ministers earlier the day as an essential step forward in avoiding a disorderly default in Greece.

The 130-billion-euro (about 172 billion U.S. dollars) deal is "an essential step forward for the country and for the euro area as a whole," Barroso told reporters after a meeting of European Union (EU) finance ministers.

The agreement "closes the door to a scenario of an uncontrolled default," said Barroso, who expressed his confidence that "a high number of private sector bondholders will participate."

Fiscal consolidation and structural reform are the only way Greece can move forward, he added.

Barroso's comments came hours after eurozone finance ministers reached an agreement after a 13-hour-meeting on a second bailout plan for Greece and its debt restructuring program, which aims to bring down Greece's debt-to-GDP ratio to 120.5 percent by 2020 from the current 160 percent.

The deal has been widely welcomed. European Central Bank President Mario Draghi told reporters after the meeting the deal was "a very good agreement."

Greek Prime Minister Lucas Papademos, who was also present at the meeting, hailed the agreement, saying "It's no exaggeration to say that today is a historic day for the Greek economy."

IMF chief Christine Lagarde welcomed the deal and praised the "great efforts" made by all sides.

German Finance Minister Wolfgang Schaeuble told reporters earlier Tuesday "It's a result that can be justified and that creates the preconditions to get Greece onto a sustainable return to economic health if the swap deal with private creditors is successful."