Euro area finance chiefs approved a second bailout for Greece worth 130 billion euros late yesterday after it fulfilled all the requirements needed to receive the aid package, including a historical debt-swap with private bondholders last week.

The official consent will be given on March 14, where one day later the IMF will vote on their contribution to the bailout.

The approval will provide Greece tranches of 5.9 billion euros, 3.3 billion euros and 5.3 billion euro in March, April and May respectively to be funded from the European Financial Stability Facility (EFSF) which is also expected to be used in funding Greece's bank recapitalization.

In return, Greece has to sign on the strong austerity measures and completing the debt restructuring with private creditors.

Already, finance ministers provided a tranche of 35.5 billion euros in payments and interests to Greece's creditors on March 9 after it reached a deal with private sector bondholders that would wipe more than 100 billion euros off Greece's debt and help it to cut deficit to 117% of GDP by 2020.

On the other hand, European chiefs called Spain to make tougher budget cuts to slash the shortfall by extra 0.5% of GDP in 2012 budget, noting that Spanish Prime Minister Mariano Rajoy announced a deficit target of 5.8% this year.