Greece, creditors look set to finalize bailout

On Saturday creditors were said to have agreed amongst themselves a 27-page draft document, known as a "memorandum of understanding," on the bailout. The finished product was expected to be given to Athens soon.

Officials from the EU and International Monetary Fund (IMF) met the Greek finance and economy ministers in Athens on Saturday. Initial talks were said to be concerned with the first steps necessary for Greece to receive money to meet its debts.

"The discussion today has to do with the prior actions for the first disbursement," a Greek government official said, adding that the focus of the talks on Sunday would address "the more controversial issues in the bailout agreement."

"We hope that everything will go well," Greek Economy Minister Giorgos Stathakis told journalists in Athens outside the hotel where talks were taking place. Asked whether an agreement was within reach, Stathakis said that "could be" correct.

The memorandum of understanding spells out the economic reforms Greece would need to implement in exchange for the rescue aid.

For two weeks, Greece has been negotiating the new bailout - its third in five years - with the European Commission, the European Central Bank (ECB) and the IMF.

Narrow time frame

The drafting of a new three-year 86 billion euro deal, along with the conditions for it, could be ready by Tuesday. The document would then be voted upon in the Greek parliament on Thursday, and by EU finance ministers - who would meet or hold a teleconference - on Friday.

The timing of the deal would allow Greece to meet repayments due on August 20 to the ECB.

Despite the prospect of an agreement, Greek stocks have tumbled since reopening in the past week, and new elections are thought likely in the fall.

Finnish Foreign Minister Timo Soini was reported by the Reuters news agency as saying that the country would not take part in the bailout. Soini, of the anti-immigration True Finns party, said the policy of providing help to Greece was no longer working and the country would likely leave the eurozone.

Greece appeared to come close to an exit from the eurozone last month after months of negotiations that often became acrimonious. The country's anti-austerity Prime Minister Alexis Tsipras finally agreed to a deal that required Athens to further tighten the purse strings, in order to stave off an economic collapse.

rc/gsw (dpa, Reuters)