Papandreou to quit ahead of new Greek government

GREECE’S prime minister and the leader of the main opposition party last night reached initial agreement on forming an interim government.

Prime Minister George Papandreou said he will not head the interim government and that talks will continue today.

The interim government is expected to be in place for about three to four months in order to ensure a new European debt deal and secure a vital instalment of bailout loans that Greece needs to avoid default.