Greece and its international creditors have reached a deal on the next stages of Athens’ €86bn bailout, removing the risk that it could default on more than €7bn in debt repayments that fall due next month.

The deal ends months of uncertainty that have weighed on Greece’s recovery and spooked investors, allowing the country to secure money it badly needs while putting off difficult discussions on debt relief.

Jeroen Dijsselbloem, the Dutch finance minister who chaired the meeting, said the outcome was “a major step forward” that would help put Greece’s economy on a sounder footing.

Thursday’s deal resolves a stand-off between the Washington-based IMF and the EU over the conditions for the fund to take part in Greece’s bailout — a step Berlin says is essential if Greece is to receive any more aid.

The IMF has consistently argued that Germany and other eurozone countries need to offer Athens major debt relief to make its repayments sustainable, while the European Commission and EU capitals have accused the IMF of being overly pessimistic in its assessments.

Under the compromise deal, the IMF is set to formally join the rescue programme, but delay providing any money to Athens until the eurozone gives more clarity on what debt relief it is prepared to offer.

Christine Lagarde, the IMF head, said she would swiftly make a proposal to the fund’s board for a “precautionary standby arrangement for Greece”, saying she hoped the process could be completed by July 27.

Under the plan, the fund would make clear that it is prepared to give up to $2bn to Greece — the small amount reflects the fact that the eurozone bailout already covers Greece’s economic needs.

Ms Lagarde said that while ministers at Thursday’s meeting had further fleshed out debt relief options for Greece, what was on the table still did not allow the fund to assess whether Athens’ debts were sustainable.

The debt relief “needs to be better clarified”, she said. “This is something that will need to happen.”

Possibilities set out by ministers on Thursday included delaying repayment of interest and principal on more than €100bn of older Greek bailout loans by up to 15 years.

Their joint statement also takes on board a French proposal to link future debt repayments to the strength of Greece’s economic growth.

Mr Dijsselbloem said he hoped governments would make further headway in fleshing out the options “long before the end” of Greece’s bailout programme in mid-2018. But some European diplomats and officials were more cautious, saying that in practice the eurozone would probably be unable to give the IMF the certainty it needs before the programme ends.

The nations in the euro bloc have consistently said any decisions on debt relief would only come at the end of the country’s bailout programme, and after a detailed assessment of actual need.

Poul Thomsen, director of the IMF’s European department, said the deal was “not the first best solution”, which would have entailed ministers providing the “full detail” of a debt relief package.

Euclid Tsakalotos, Greece’s finance minister, told the FT that the deal was a “big step forward” compared with previous rounds of discussions by Greece’s international creditors.

The deal means that the European Stability Mechanism, the eurozone’s bailout fund, will release an €8.5bn tranche of bailout money intended to cover debt repayment needs, while also enabling Greece to clear arrears and build up a cash buffer.

The Greek government is hoping that the bailout breakthrough can open up the possibility of the European Central Bank starting to buy its bonds as part of its economic stimulus programme.

Asked about that possibility, the ECB said only that Thursday’s talks had been “a first step towards securing debt sustainability”.