– Adds Comments From Schaeuble In Final Paragraphs

BRUSSELS (MNI) – Eurogroup finance ministers must take a decision
on the next tranche of Greek aid in order to end the uncertainty hanging
over the country’s future, Olli Rehn, the EU economic and monetary
affairs commissioner, said on Monday.

“It is necessary to find the political good will to strike a deal,”
Rehn said as he arrived for the Eurogroup meeting here.

Finance ministers of the 17 countries that share the euro are
headed toward a deal focused on lower interest rates on Greek loans and
a buyback by Greece of some of its private-sector debt, officials said.
The measures seek to bridge a gap between the Eurozone and the
International Monetary Fund over making Greece’s debt “sustainable.”

“We are going to try to work for an accord that is credible for
Greece,” IMF Managing Director Christine Lagarde said as she arrive here
for the meeting.

Austrian Finance Minister Maria Fekter predicted the Eurogroup
would agree on a “mix of measures” for Greece, including lower borrowing
rates and a transfer from central bank of the profits they earned on
previous loans. A debt haircut on official loans that taxpayers would
have to shoulder has been rejected by “all countries,” she told
reporters.

Since the Greeks have worked “very hard” and fulfilled all
commitments, a solution must be reached today, Fekter said, noting
discussion of an extension of two years until 2022 of Athens’ target to
trim public debt to 120% of GDP. At the same time, she urged that the
IMF be kept on board for the “operative application” of measures, even
though the Fund has opposed such an extension

Greek official said they had done all that international creditors
have asked and now expect the next tranche of aid to be forthcoming.

“Greece has fully delivered its part of the agreement, so we expect
our partners to deliver their part too,” Greek Finance Minister Yannis
Stournaras said.

French Finance Minister Pierre Moscovici said that after a
conference call on Saturday ministers have an accord that is already 95%
complete. He said there were just “centimeters” to go to reach a final
deal.

German Finance Minister Wolfgang Schaeuble also said that most of
the work had been completed already and that a “quick” decision was
possible. “We are ready to reach a deal and I think we will be
successful today,” he said. “I hope we won’t have to work too late.”

Schaeuble also ruled out an official debt haircut, while insisting
that the IMF remain on board. A favorable report from the troika,
including the IMF, is the basis for any ratification by Germany’s lower
house of parliament, he reminded.

– Paris newsroom, +33142715540; jduffy@marketnews.com

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