Greece debt talks 'close to deal'

BBC News
January 27, 2012

Greece could reach a deal with its creditors over the weekend, according to a senior European official.

"We're very close," the European Union's Economic Commissioner, Olli Rehn, said at the World Economic Forum in Davos.

Greek Prime Minister Lucas Papademos also said he was optmistic a deal could be reached in "the coming days".

Greece and its private creditors have failed to agree to reduce the existing debt to help Greece avoid bankruptcy.

"They're about to close a deal, if not today, maybe over the weekend, preferably in January rather than February," Mr Rehn said.

He said he hoped a deal would be done by the EU summit that takes place on Monday.

Mr Papademos told the Reuters news agency that the two parties had made "significant progress over the last few weeks and in the last few days in particular. We are trying to conclude the discussions as quickly as possible".

"Greece will not default," he said.

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