Eurozone officials in talks to finalise Greek bailout

Eurozone officials are holding 11-th hour talks on Sunday one day ahead of a crucial finance ministers meeting to finalise a second Greek bailout deal which they hope will remove the possibility of Greece leaving the Eurozone. 

Reuters/Yiorgos Karahalis

The deal to write off 100 billion euros of debt and provide a loan of 130 billion euros depends on new spending cuts by the government which will come amid violent protests on the streets.

On Sunday, hundreds of people joined a demonstration in central Athens against the austerity measures which include a 22 per cent reduction in the minimum wage.

For Greek Prime Minister Lucas Papdemos, securing the loan is essential because without the bailout Greece will be unable to meet a bond repayment of 14.5 billion euros on 20 march.

But while Greek party leaders seeking power in a general election set for April have committed separately to carrying out radical reforms, hardliners have floated a willingness to cut the country adrift of the euro.

The Italian government said on Friday that Prime Minister Mario Monti, German Chancellor Angela Merkel and Papademos were "confident that a deal can be reached on Greece at the Eurogroup," after telephone talks.

But Germany and The Netherlands still need to get the second bailout past sceptical parliaments.