Eurozone finance ministers gathering in Brussels

PanARMENIAN.Net - Eurozone finance ministers meet in Brussels Monday, Feb 20, with time running out if they are to close a new 230-billion-euro ($300 billion) bailout package for Greece and avert a chaotic default, according to AFP.

After several false starts during weeks of difficult negotiations, the ministers are scheduled to start meeting at the EU headquarters from 3:30 pm (1430 GMT), bidding to green light terms on an exchange of bonds held by private investors, the launch of which is penciled in for Wednesday.

They hope this key step can quell mounting suggestions that Athens could be pushed out of the common currency area.

Designed to write off 100 billion euros of Greek sovereign debt, new IOUs would be issued in return for giving up rights on old bonds that have already lost market value.

Fellow eurozone governments would also inject another 130 billion euros in sweeteners for Greek banks, guarantees covering the weeks-long legal bond-swap window and eventual cash loans to the government in Athens.

But full delivery, as well as IMF assistance, will be contingent on EU-ordered spending cuts and reforms bearing fruit.

For the caretaker Greek government led by Lucas Papademos, financial aid is needed to meet bond repayments of 14.5 billion euros due March 20.

Papademos flew to Brussels late Sunday for 11th-hour talks before attending Monday's Eurogroup.

In Washington, Treasury Secretary Timothy Geithner said the emerging deal was "deserving of support of the international community and the IMF."