Lenders close to new rescue deal for Greece

Article reported that international lenders from the ECB/EU and IMF were close to a deal to wind down Greece's existing €10bn in early June 2011 bail-out programme and launch a new rescue by the end of June 2011, but would still need to overcome differences on how much private bondholders would contribute.

The negotiations would be irrelevant if George Papandreou, the Greek prime minister, could not get parliamentary approval for a new austerity deal struck with troika lenders on the 3 June 2011. Cross-party support in Greece was a prerequisite for EU creditors agreeing new aid.

Kathimerini, 8.6.11: Next aid payment not a done deal http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_30896_08/06/2011_394064

ESO: Background information: Greece premier presents tough reforms / Greece expects to receive next bail-out tranche http://www.europeansources.info/record/greece-premier-presents-tough-reforms-greece-expects-to-receive-next-bail-out-tranche/

ESO: Background information: The Greek debt crisis of 2010 http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

Kathimerini, 5.6.11: PM to seek to rally troops on program http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_5_05/06/2011_393633

EUObserver, 6.6.11: Agreement over next slice of Greek aid http://euobserver.com/9/32440

EurActiv, 6.6.11: Greece's new austerity plan draws mass protest http://www.euractiv.com/euro-finance/greeces-new-austerity-plan-draws-news-505345

Ta Nea, 6.6.11: Angry Ones protest weakens government (via PressEurop) http://www.presseurop.eu/en/content/news-brief-cover/695441-angry-ones-protest-weakens-government

Spiegel Online International, 6.6.11: Greece Back on the Brink (via PressEurop) http://www.spiegel.de/international/europe/0,1518,766809,00.html

---