Prime Minister George Papandreou said on Sunday that a financial deal to rescue Greece's economy has been reached.

The unprecedented bailout agreement between Greece and the International Monetary Fund and European Union to keep the country from going bankrupt could provide up to $160 billion, the New York Times has reported.

The Times also said that a determined-appearing Papandreou called on his countrymen to accept "great sacrifices," to keep Greece afloat.

He said, "I have done and will do everything not to let the country go bankrupt. We want to show that Greece is changing, going through a rebirth. We are talking about historic changes."

Appearing with his Cabinet members, Papandreou indicated government employees' wages and retirees' pensions would be cut, and members of Parliament would forgo their bonuses.

The Times further reported that Government spending is to be slashed and the country's value-added tax and taxes on fuel, tobacco and alcohol are to be increased. Other measures include legislation making it easier for the government and companies to lay off workers. (With Inputs from Agencies)