BBC News
February 6, 2012
For months the Greek government has been negotiating over the terms of a second bailout. Deadlines and ultimatums are announced but come and go.
A date is approaching, however, when - if there isn't a deal - Greece faces bankruptcy. On 20 March Greece has to find 14bn euros (£12bn; $18bn) to service its debts. As things stand it does not have the funds.
Before it can contribute more to Greece, the IMF is obliged to show that the country's debts are on a sustainable path. By 2020, they want the country's debt to GDP ratio to have dropped from the current 160% to 120%.
There have been two strands to the negotiations.
First of all, private investors - mainly the banks - have been asked to accept losses of up to 70% on their investments. That should wipe 100bn euros from the Greek debt mountain of 360bn. The investors would exchange bonds for new ones worth less than half the value. They would not mature for 30 years.
There have been arguments over what interest rate these investors would settle for and that has caused some delay.
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