Greece was on the brink of a deal with private creditors on Wednesday night after weeks of brinkmanship.


But the simmering clash with EU officials and the International Monetary Fund has yet to be resolved and remains a larger threat.


"We are just one step, just a formality, from completion," said Evangelos Venizelos, the Greek finance minister.


The deal will slice €100bn off Greece's debt and leave banks, pension funds, and other bondholders nursing effective losses above 70pc, but it does not in itself avert the risk of a Greek default in March.


Greece must reach a deal over coming days with Troika officials from the IMF, EU, and European Central Bank, who are demanding further austerity cuts equal to 1pc of GDP before disbursing fresh loans.


Poul Thomsen, the chief IMF negotiator, said there would have to be a cut in the minimum wage and more job losses in the public sector, but acknowledged that the country cannot take much more pain.

http://www.telegraph.co.uk/finance/fina ... looms.html