Eurozone set for vital loan talks

Eurozone finance ministers are preparing for a vital third meeting, in Brussels, to try to solve the crisis over Greece's bail-out.

Analysis: Andrew Walker, BBC World Service economics correspondent

 

Greece has put forward a proposal for a six-month extension of its eurozone loan programme instead of renewing its existing bailout deal, which comes with harsh austerity measures.

But Germany has already rejected this.

The existing bailout deal expires at the end of the month and Greece could run out of money without a new accord.

On Friday the German government's stance appeared to soften after a spokeswoman for German Chancellor Angela Merkel said Greece's request for a loan extension from its eurozone partners provided "a starting point" for more talks. 

"From the German government's point of view, [the request] is still not sufficient," said Christiane Wirtz said. But "it certainly offers a starting point for further talks."

'Constructive' 

Earlier on Friday Finnish finance minster, Antti Rinne hinted at "a spark of hope" of finding a solution at Friday's meeting, following a 50-minute phone call between Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel on Thursday night.

"Last night, a spark of hope arose that an understanding could be reached... so that Greece could continue the underlying programme to strengthen its economy," Antti Rinne told a Finnish newspaper.

Finland had previously joined Germany in rejecting the Greek proposal.

One Greek government official described the phone call as "constructive", adding: "The conversation was held in a positive climate, geared towards finding a mutually beneficial solution for Greece and the eurozone."

Germany stands to lose up to €80bn if Greece were to leave the eurozone.