ATHENS, Greece, Feb. 6 (UPI) -- Greek politicians said they were far apart as a noon deadline loomed to agree on severe reforms needed to get a $170 billion bailout vital to avoiding default.
Prime Minister Lucas Papademos set the deadline for the three leaders of Greece's national unity government to accept European Commission, European Central Bank and International Monetary Fund demands for immediate, deep spending cuts and labor reforms, state broadcaster ERT reported Sunday night.
The EC, ECB and IMF -- the "troika" that organized the financial rescues of Greece, Ireland and Portugal -- said those cuts and reforms were needed for Greece to quality for a needed $170 billion rescue package if it is to avoid default on a $19 billion bond repayment it otherwise can't pay March 20.
The troika's demands must be worked out this week for Greece to get the money in time to avoid a government default, which officials have said would have disastrous effects, spreading like a contagious disease to Portugal, Italy and possibly other countries.
Jean-Claude Juncker, head of the eurozone group of finance ministers, told Der Spiegel this weekend he had lost his patience with Greece.
If Athens does not "get muscles" and work things out in the next few days, "then there would not be a new program and that would mean that in March a declaration of bankruptcy would occur," he told the German weekly news magazine.
Papademos planned to meet with the national unity government politicians -- representing Greece's socialist, conservative and nationalist parties -- later Monday after holding 5 hours of meetings Sunday.
For the past two weeks, Greece has been locked in difficult negotiations with the international creditors on the loan terms, which include a range of unpopular reforms, including salary cuts for millions of workers already hit by unusually severe austerity measures.
The troika has demanded cross-party support for the reforms and austerity programs to ensure Greece doesn't backslide after a new government takes office in the spring.
But faced with growing discontent, the political leaders are disinclined to sign off on the demanded reforms, which they see as capable of sparking social upheaval, The Wall Street Journal reported.
Greece is also negotiating with private lenders and bondholders on a plan to swap old bonds for new ones at a considerably lower interest rate, saving Greece an estimated $130 billion in debt.
Private-sector creditors were reported willing to take a loss of more than 70 percent on their Greek government bonds, the Financial Times reported.