Greece to seek loan extension under pressure from eurozone

Syriza-led government seems ready to negotiate new aid package but says it will not succumb to 'blackmail'

Greece was showing signs of buckling under pressure from its eurozone partners on Tuesday night as it prepared to seek an extension of a loan agreement for up to six months. Faced with a Friday deadline for agreeing to an aid package drawn up by its 18 partners in the single currency, Athens made the first concessions in the game of brinkmanship by indicating that it would have to continue accepting financial support when the current bailout expires at the end of the month.

Sources close to the Greek government sought to soften the blow of its apparent U-turn by saying it was seeking to sign up to a temporary loan agreement rather than a continuation of the existing bailout, which forced Athens to adopt harsh austerity measures and a series of unpopular structural reforms to its economy, including wage cuts, reduced pensions and sweeping privatisations.

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