February 15, 2012 10:55 PM EST
(Reuters) - Greece is hopeful it can secure its second EU/IMF bailout in as many years and a deal on easing its debt burden but the argument with its eurozone partners is not 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 €130bn rescue package, 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 eurozone finance ministers on 20 February after talks in Athens and at the eurozone level failed to produce a deal to avert a Greek bankruptcy which could shake financial markets around the globe.
Venizelos told reporters that the cabinet had decided how to plug a €325m gap in the €3.3bn of extra budget savings this year which the EU and IMF are demanding.
Follow us
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 eurozone finance ministers in the Eurogroup had demanded both steps be taken before making a final decision on the bailout.
With mistrust of Athens running high, EU sources told Reuters that eurozone 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 €14.5bn of debt repayments fall due on 20 March.
"The big issue of the €325m has been finalised and this helped the discussion," Venizelos said following a lengthy telephone conference call with his eurozone peers.
The Eurogroup had been due to meet in Brussels 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 shortly before the Eurogroup conference call. Socialist leader George Papandreou wrote a similar letter.
Venizelos said he hoped eurozone officials could tie up all the issues before the ministerial Eurogroup meets, opening the way for a bond swap deal with Greece's private creditors, known as PSI, which will reduce its debt mountain.
Are Record-Low Mortgage Rates Hurting The US Housing Market?
Airbus Smells Good Business In Wider Plane Seats For Bigger Americans
French, Germany Consumer Confidence Holding Up -- A Dangerous Sign of Euro Zone Crisis Fatigue?
US Stocks - Time To 'Sell In May And Go Away'?
Investors Love Rio: Why Foreign Companies Are Buying Into Brazil's Real EconomyWe value your privacy. Your email address will not be shared.
