By Dina Kyriakidou and Lefteris Papadimas
February 15, 2012 9:50 PM EST
(Reuters) -- Greece expressed hope Wednesday that it can secure its second EU/IMF bailout in as many years and a deal on easing its debt burden next week, but its euro zone peers made clear the months of increasingly ill-tempered argument are not quite over yet.
Finance Minister Evangelos Venizelos said the Greek side had met the final two demands set by the European Union and IMF to seal the 130 billion-euro rescue, which Athens needs to avoid a chaotic default when big debt repayments fall due in March.
But a government official in Germany, which has got involved in testy exchanges with Athens over its will to tackle its problems, said the Greek side still had questions to answer.
Greece pinned its hopes on a meeting of euro zone finance ministers on Monday, after talks in Athens and at the euro zone level failed to produce a deal to avert a Greek bankruptcy which could shake financial markets around the globe.
Venizelos told reporters late on Wednesday the cabinet had decided how to plug a 325 million-euro gap in the 3.3 billion euros of extra budget savings this year which the EU and IMF are demanding.
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And he noted that the leaders of both parties in the government of Prime Minister Lucas Papademos had given written undertakings to implement the austerity measures, which provoked a night of fighting, arson and looting in Athens on Sunday.
Exasperated euro zone finance ministers in the Eurogroup had demanded both steps be taken before making a final decision on the bailout.
MISTRUST OF ATHENS
With mistrust of Athens running high, EU sources told Reuters that euro zone officials had considered whether it was possible to delay part or all of the rescue deal while still avoiding a disorderly default.
Greece needs the funds to avoid bankruptcy when 14.5 billion euros of debt repayments fall due on March 20.
"The big issue of the 325 million euros has been finalised and this helped the discussion," Venizelos said following a lengthy telephone conference call with his euro zone peers.
The Eurogroup had been due to meet in Brussels on Wednesday but its Chairman Jean-Claude Juncker scaled this down to a teleconference, complaining that Greek political leaders had failed to provide written commitments or plug the savings gap.
Greek party leaders have a reputation for working right up to deadlines, or beyond them, raising tensions with the Eurogroup which fears that they will avoid implementing the austerity package in full after elections expected in April.
However, conservative leader Antonis Samaras, the front runner to become the next prime minister, provided his written undertaking to the EU and IMF on Wednesday shortly before the Eurogroup conference call. Socialist leader George Papandreou wrote a similar letter.
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