The Eurozone´s grouping of finance ministers -known as the Eurogroup- is scheduled to hold a conference call today, starting at 11:30 London time, in which they will be discussing the latest developments in Greece.

Nevertheless, they are not expected to take any decisions at this juncture since they have yet to receive the final report from the Troika (representatives from the European Commission, International Monetary Fund and European Central Bank). Action is therefore more likely to be taken at the Eurogroup emergency meeting scheduled for November 8th or at their regular session, which is planned for November 12th.

Thus, conversations will likely center on options over how to finance Greece and reduce its debt load. According to reports, Eurozone finance ministers are examining applying lower interest rates on the bailout loans, extending their maturities, debt buy-backs to take advantage of the current financing situation, bringing forward aid payments or the issuance of T-bills as possible measures.

Greek Prime Minister Antonis Samaras announced the end of negotiations with the Troika yesterday. The budget goes to the Hellenic Parliament today after which the austerity package, which outlines €13.5bn in cuts, will be brought before lawmakers -next week. He said that they had done "everything we could" and achieved "significant improvements" while calling on coalition partners to support the measures. He made clear that approving the package would keep Greece in the euro and that the only alternative was "chaos". "It is now down to the sense of responsibility of all political parties and each MP," he stated.

But the smallest of the three coalition partners -Democratic Left- was quick to reject the measures due to objections over the labour reform included. "Democratic Left has fought to defend labor relations and sticks by its positions," the party said in a statement.

The head of the second largest coalition member Evangelos Venizelos considered the news to be "unfortunate" but pledged his PASOK party´s backing to Samaras, although he did admit that three of his MPs plan to vote against the measures.

For all of the above reasons there can be little doubt that Greek finance minister Yannis Stournaras Eurozone peers will be eager to hear his update on the situation during today's Eurogroup telephone conference.

JM

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