Brussels (AFP) - the Finance Ministers of the euro area were Saturday to release urgent aid to save the Greece of bankruptcy in the disputes in the difficult scenes on a second plan to rescue the country devastated by debt.
The Ministers were to hold a conference call at 1600 GMT to sign off the coast by releasing EUR 12 billion to the Greece, the fifth tranche of aid of a 110 billion euro ($160 billion) rescue plan by the European Union and the IMF last year.
The Governments of the euro area has reached an agreement in principle on the payment Friday after that met with the Greek Parliament had and the IMF requires adopting difficult austerity despite riots in the streets of Athens.
The Ministers have decided to cancel a meeting in Brussels on Sunday and speak by telephone instead, because nothing is holding the following instalment, but need more time to negotiate a second rescue of the Greece plan, said diplomats.
"Since things are progressing on the fifth instalment, which is a good thing and a breath of fresh air, and work on (the new rescue plan) are not ready for the Sunday, we chose to have a conference call," said a European diplomat.
The Greece desperately need EUR 12 billion this month to avoid an immediate default on its debt that analysts warn could spread to other nations of the euro, as the Ireland and the Portugal and even Spain and Italy.
But Athens has requested a new rescue plan said the Prime Minister George Papandreou could be as large as the first.
"We cannot afford to relax and we must move forward as quickly as possible, on the side of the IMF and the euro area" Polish Minister of finance Jacek Rostowski, whose country took over the rotating EU Presidency, said Saturday.
The negotiations are more difficult this time around because some Governments, especially Germany, private investors to share the pain by accepting a voluntary rollover of Greek debt. Under the regime that it would buy new bonds to replace those coming due soon.
Their plan won support Friday in a key group of global finance, the Institute of International Finance (IIF), which represents banks, insurance companies and investment funds.
"The private financial community is ready to engage in a voluntary, cooperative, transparent and broad effort in support of the Greece, held his unique and exceptional situation," said the Washington-based IIR.
Diplomats said a decision on the size of the new rescue plan and the participation of private investors, could come to a meeting in Brussels on July 11, or up to two months later.
"The program should be sealed as soon as possible, but we cannot exclude that the conclusion be September," said a diplomat.
Another diplomat said that it is preferable to proceed with caution because the rate is "the enemy of a thorough decision."
Given that the euro area is to avoid any scheme which would be interpreted as a default value, the Governments powerful talks with rating agencies in the world to determine how they would consider the deal, said the diplomat.
France, which banks hold a large proportion of Greek debt, has proposed, among other measures, as lenders roll over their loans in 30 years of new bonds, Greece gives more time to put its financial house in order.
German banks made a gesture Thursday by agreeing to extend the deadlines of approximately 3.2 billion euros ($4.6 billion) in Greek bonds due to expire by 2014.
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