Greece to ask eurozone to extend ‘loan agreement’

Greece’s leftist-led government said it will today submit a request to the eurozone to extend a “loan agreement” for up to six months, raising prospects of a last-minute deal to keep the heavily indebted country afloat.

While European officials worked frantically with Athens to find a formula, EU paymaster Germany said no such deal was on offer and led the chorus of partners demanding that Athens must stick to the terms of its existing international bailout.

The move is an attempt by the new leftist-led government of Alexis Tsipras, the prime minister, to keep a financial lifeline for an interim period while sidestepping tough austerity conditions in the EU/IMF programme.