LEAD: Greek party leaders hold crucial debt talks

Feb 8, 2012, 20:29 GMT

Athens - Greece's governing coalition on Wednesday mulled a spate of harsh new cost-cutting measures that the country will have to adopt to receive further loans to avoid a looming bankruptcy.

The three party leaders backing the coalition government under Prime Minister Lucas Papademos are under increasing pressure to accept the 50-page draft deal on steep cuts demanded by international creditors, in return for a 130-billion-euro (172-billion-dollar) bailout.

Athens needs the money to avoid a default on bond repayments due in March.

According to the draft deal, which was leaked to Greek media, the government is under pressure to carry out private-sector wage cuts, pension cuts and public-sector sackings.

International creditors are demanding that the private-sector minimum wage be reduced by 22 per cent, from 751 euros (995 dollars) to 590 euros, and for people under age 25 by 32 per cent.

The government will be required to freeze all salary raises until the unemployment rate is reduced to 10 per cent from the current 19 per cent.

Pension cuts of up to 15 per cent will be carried out for many public-sector companies, while the government will be forced to lay off 150,000 public-sector workers by 2015.

The Eurogroup panel of eurozone finance ministers is to meet Thursday in Greece to discuss a second bailout package for Athens, an indication that a deal is close.