Greece drafts bailout text for parties as talks inch forward

Reuters
February 7, 2012

Greece's government is preparing a document with a list of painful reforms needed to clinch a new financing package, a government official said on Tuesday, moving Athens one step closer to a deal needed to avoid a chaotic debt default.

Officials worked on the draft of a text on the 130-billion-euro bailout plan that will be put to political leaders for approval as strikers protesting against more austerity tussled with police outside parliament.

"The Greek government is working on the final document that will be discussed at the political leaders' meeting later in the day," the official told reporters.

Safe haven German government bond futures reversed gains on news of progress in the talks, while the euro also rose against the dollar.

Prime Minister Lucas Papademos negotiated through most of the night with Greece's European Union and IMF lenders, ending at 4 a.m. (0200 GMT) when a 24-hour strike began against the reforms, closing tourist sites and disrupting public transport.

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