European leaders expressed optimism on Friday that Greece would secure a new rescue package worth 130 billion euros ($171 billion) though policymakers admitted urgent work was still needed to get its debt-cutting programme back on track. Luxembourg's Jean-Claude Juncker, who will chair a crunch meeting of euro zone finance ministers on Monday, said efforts to slash Greece's debt from 160 percent of output to a target of 120 percent by 2020 were still "far away" from fruition.
"All the discussions I will have until Sunday night will try to move the figure nearer to the target," the head of the Eurogroup told reporters in his home capital. --- Juncker says Greek 2020 debt target far off --- ECB mulls extending bond writedown access Earlier, Greek caretaker Prime Minister Lucas Papademos talked to fellow euro zone leaders to persuade Berlin and others to back bailout measures needed to stave off bankruptcy.
German Chancellor Angela Merkel, Italy's Mario Monti and Papademos all voiced optimism about an accord during a three-way conference call, Monti's office said in a statement. The Greek premier also spoke to Dutch Prime Minister Mark Rutte and state television said he would pursue talks with euro zone partners "to create a positive mood in view of Monday's meeting and to dispel doubts that could thwart this agreement".
A brief message by Rutte on his Twitter account noted simply of the call with Papademos: "I have pointed out to him that the Greek people should comply with all demands to get a new programme." Rutte's finance minister, Jan Kees de Jager, indicated on Thursday that the whole deal had been close to falling apart earlier in the week, saying that if a planned meeting of the Eurogroup of finance ministers had gone ahead two days ago, he and his German and Finnish counterparts would have voted against granting Greece more aid.
Mutual accusations of brinkmanship between Athens and other euro capitals have soured the atmosphere and strained ties within the single currency union as it faces its toughest challenge since euro notes and coins were introduced in 2002. Negotiations were put back on track on Thursday when Athens set out the remaining cuts in a 3.3-billion-euro austerity package whose passage through parliament triggered rioting and looting through central Athens last Sunday.
According to an assessment by the European Commission, the European Central Bank and the IMF, Greek debt will still be around 129 percent of GDP in 2020 - higher even than the 125 percent that most euro zone states would probably accept. The IMF has said that if the ratio cannot be cut to around 120 percent by 2020, it may not be able to finance the second, 130 billion euro programme for Greece. The Fund's own contribution has not yet been settled. Officials have previously said a target of 125 percent would be acceptable to most euro zone members but further measures will be required to meet even that goal.