Greek Prime Minister Alexis Tsipras won four more months to sell his policy program to creditors while keeping his party at home on board, as euro-area finance chiefs deferred a showdown over the nation's future in the currency bloc.

Greek stocks and bonds surged on Tuesday as finance ministers approved a bailout extension after the government pledged to revamp tax collection, consolidate pension funds and maintain sales of state-owned assets. The accord paves the way for the European Central Bank (ECB) to continue support of Greek banks, while buying time for the euro area's most indebted state to convince creditor institutions it will deliver.

“Ceasefire, but no peace agreement,” Carsten Brzeski, chief economist at ING Diba in Frankfurt, said of the deal in an email. “The general question of how to solve the unsustainability of Greek debt has been postponed, not solved.”