New York Times
February 5, 2012
Greece’s efforts to secure a second, €130 billion international bailout and avoid a default next month stalled on Sunday.
Prime Minister Lucas D. Papademos met with leaders of the three parties in his coalition government to seek their support for the austerity measures demanded by the country’s creditors, including a reduction in the public payroll and pay cuts for workers in the private sector.
At the same time, Finance Minister Evangelos Venizelos met with representatives of creditor banks to secure agreement on a bond swap that would lower Greece’s debt by €100 billion, or $132 billion.
The so-called troika of the European Union, the European Central Bank and the International Monetary Fund are demanding that the Greek government impose new austerity measures before granting the country a second bailout. On Sunday, Mr. Papademos sought the backing of Antonis Samaras, head of New Democracy, and Giorgos Karatzaferis, leader of the Popular Orthodox Rally, and George A. Papandreou, the former prime minister.
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