Mr. Papandreou agreed to step aside as long as Athens could secure a loan that would help Greece avoid bankruptcy.  The nation's finance minister has said Greece needs $11 billion in bailout funds in the coming weeks to stay afloat.

Greek reaction to Sunday's developments are mixed.

A 22-year-old Athens man said he is not optimistic about his country's future, while a 33-year-old woman said she is hopeful about the political agreement. "Yes, I do feel positive.  If they finally did it, then I do feel positive because the country has to be represented in a unanimous way," she said.

The interim government is expected to get the Greek parliament and cabinet to accept the terms of a new European Union agreement, which requires Greece to raise taxes and make deeper cuts in government spending.

Late last month, Eurozone nations agreed to provide Greece with additional loans.  Mr. Papandreou then announced that he wanted to put the debt deal to a referendum.  He later withdrew the plan.

Eurozone finance ministers are set to meet in Brussels on Monday to discuss plans to release billions of dollars in bailout funds to Greece.

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