Greece wants more details on loans lifeline from EU and IMF

GREECE yesterday asked the European Union and the International Monetary Fund for further clarity about a potential financial lifeline as bond markets drove up the government's borrowing costs.

Both the IMF and EU said they would send officials to Athens for more talks on Monday aimed at sorting out more details of the standby loan offer, which is aimed at reassuring markets that Greece will not default. The Greek government says it has no plans to tap the loans. But it remains under pressure as borrowing costs are still high.

Prime minister George Papandreou said: "The markets test every detail, and every time there is a grey area the spreads go up. So what interests us is a clear framework within which we can operate."

The finance ministry made the request for talks in a letter to EU finance commissioner Olli Rehn and European Central Bank chief Jean-Claude Trichet, as well as IMF chief Dominique Strauss-Kahn. Details of the IMF's role in the rescue plan have yet to be announced.

The government said Greece would hold "systematic negotiations" with its partners during a two-day EU finance ministers meeting, which opens in Madrid today.

Greek bond yields surged again yesterday despite the weekend pledge of 30 billion (26bn) in potential loans from its eurozone partners, with additional IMF contributions – if Greece cannot borrow from other sources. The aim of the financial backstop was to reduce fears of a Greek default and lower the interest rate it must pay to borrow.