Greek Prime Minister Lucas Papademos managed to reach a tentative agreement with three of political party leaders after talks yesterday over further austerity measures demanded by international lenders to grant Greece a second bailout worth 130 billion euros announced in October to avoid default next month as 14.5 billion euros of debt matures on March 20.

According to an e-mailed statement from the premier's office in Athens, Papademos and the three political leaders agreed to make further budget-cutting measures equal to 1.5% of GDP in addition to bank recapitalization framework, wage cuts and measures to enhance competitiveness, where he will gather today with the three leaders to flesh out details of the aforesaid plan.

Antonis Samaras, the head of the second biggest political party, however, said they are asking us for greater recession, which the country can't take, and I will fight to avoid that.

The response of Greek political leaders for the measures demanded by international lenders must be provided at 11 a.m. local time today, which is a deadline imposed by the lenders.

On the other hand, talks with private-sector bondholders are still ongoing where expectations refer to the acceptance of 3.6% borrowing cost on 30-year bills and losses equal to 70% by the creditors.

Meanwhile, the European common currency is trading lower against the U.S. dollar around 1.3070, after recording a high of 1.3131 and a low of 1.3051.