Greece's budget could be back in surplus by the end of the year, although a lot of work still needs to be done in terms of reforms, the International Monetary Fund's (IMF) Managing Director Christine Lagarde told CNBC.
On Monday Greece secured a 6.8 million euro ($8.7 billion) lifeline from the euro zone on the condition that Athens cuts public sector jobs and delivers other reforms to generate the required cash. The deal prevents the country from defaulting on debt due in August.
Lagarde told CNBC she was pleased with Greece's progress and believed it to be on the road to recovery.
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"When I look at Greece, I'm very impressed by the efforts that have been undertaken to restore the fiscal situation of the country. It may well be that by the end of 2013, Greece will be in primary surplus, which is an amazing achievement," said Lagarde.
"A lot needs to be done, whether you're talking about the tax reform, the tax authority's reform, the continuation of the privatization program...the management of the public service - all of that is still on the table and work in progress that needs to be continued. But there have been clear achievements," she added.
As part of the deal agreed on Monday, euro zone finance ministers committed to stagger payments to Greece.
Greece has been dependent on financial support from its lenders for over three years now and has been back in the spotlight in recent weeks as the country's coalition government struggled to reach agreement on how to meet the demands of the bailout program.
Tough austerity measures, including deep cuts to government spending, raised taxes and structural reforms, have been unpopular with the Greek public.