Greece says has cleared hurdles to bailout

Venizelos told reporters late on Wednesday that the cabinet had decided how to plug a 325 million euro gap in the 3.3 billion euros of extra budget savings this year which the EU and IMF are demanding in return for the 130 billion euro rescue.

Likewise he noted that the leaders of both parties in the government of Prime Minister Lucas Papademos had given written undertakings to implement the austerity measures, which provoked serious rioting on the streets of Athens last Sunday.

Exasperated euro zone finance ministers in the Eurogroup had demanded both issues be settled before making a final decision on the bailout, Greece's second since 2010.

With mistrust of Athens high, EU sources told Reuters euro zone officials had considered whether it was possible to delay part or all of the rescue deal while still avoiding a disorderly default.

For more: Greece says has cleared hurdles to bailout | Reuters