(Refiles to remove the redundant Word global)
By Jan Strupczewski
(Brussels, July 2, Reuters) - Finance Ministers of the zone Euro will approve the next instalment of emergency aid for the Greece on Saturday and to take decisions on a second plan for three-year funding for Athens on July 11, responsible of the zone euro said.
The release of the tranche of 12 billion euros ($17 billion) of the euro and the Monetary Fund International was made possible after the Greece passed new austerity and reform the laws on Wednesday and Thursday, removing the threat of a default value in the short term.
"The conditions are now in place for a decision on the payment of the next instalment of funding for the Greece and to move quickly on a second package of assistance," European Commission President José Manuel Barroso and the President of the European Herman van Rompuy said Thursday.
The second programme of funding for the Greece is from 2011 to 2014 and will come on top of the output of EUR 110 billion program agreed with the countries of the euro and the Monetary Fund International last year.
The Ministers are unlikely to give further details on the second funding program much after Saturday, which will focus on the releasing of the next instalment of the aid for the Greece, official sources said euro area.
"Any reference to the successor (the second rescue of the Greece plan) program will be of according to what has been said in recent days," said the top euro official source.
Leaders of the European Union has made a clear commitment for the second program at the last Summit of June 23-24, which should satisfy the condition of the IMF that the euro area must commit to funding the Greece 12 months for the IMF to contribute.
The leaders said in a statement the Greek votes "will provide the basis to implement the main parameters of a new program supported jointly by its partners in the euro zone and the IMF, in accordance with current practices."
They said also for financing program would be taxpayers euro area but a substantial, but a voluntary contribution of private investors via a reversal of the Greek debt.
Additional external funding for the Greece in this period, the public and private money, could be about 80-90 billion euros, officials said. The Greece should raise another 30 billion euros of privatization at the moment.
WHAT IS THE EXTENT OF THE PRIVATE SECTOR
Finance Ministers of 17 countries with the help of the euro and the European Central Bank President Jean-Claude Trichet are likely to discuss in a conference call Saturday how many of the 80-90 billion euros would come from the private sector.
Private financial institutions held talks with the Finance Ministry and Central Bank representatives in various countries of the euro area last week to discuss under what conditions the private sector would be willing to help finance the Greece and for how much.
The participation of the private sector in the next package for the Greece is a must for several countries in the euro area to provide more money for the Greece as voters grow more and more opposed to the burden of bailing the Greece on their own.
But the participation of the private sector must be voluntary to not trigger a downgrade of Greek debt default status by the rating agencies - a development that could put the Greek banking sector at risk.
The Institute of International Finance, a global association of financial institutions, issued a statement Friday said the "private financial community is ready to engage in a voluntary, cooperative, transparent and comprehensive effort in support of the Greece, held of his unique and exceptional circumstances."
The German Finance Minister Wolfgang Sch?uble said German banks wanted to roll over 3.2 billion euros worth of Greek bonds maturing in 2014.
French banks have reached an agreement on how to ride on a portion of their holdings of Greek debt, said French President Nicolas Sarkozy, but did not indicate the total amount.
FOCUS ON NEXT SLICE
Release more money for the Greece of the existing program will be the main tangible outcome of the Conference of Ministers appeal, which is to begin at 1600 GMT Saturday, and that could produce a statement, said the officials.
"" The Ministers will really focus the meeting on the range of 5. "."The fact that they do not respond in person means that there is no major obstacle to decide on this, euro zone official, who asked not be named, said.
"They can exchange information on the status of informal contacts which were also held with the private sector, which is one of the many issues in the second program and how they will organise discussions on 11 July."
The July 11 meeting is to finalize the second package of funding for the Greece, but officials said they would not surprised if the final decision on the second package is only made by the Ministers of finance in September.
The appeal, Ministers are also likely to discuss the status of the Finland to help with new whereby the Greece must provide guarantees for the part of the loans guaranteed by the Finland with ease European financial stability (EFSF).
"We have a political solution and we will find a technical solution in a timely manner," a second euro zone source involved in the discussions on the Greece, said. (Statement by Jan Strupczewski, mounting by Matthew Jones) ($1 = 0.705 Euros)
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