Greece to table draft law on pension cuts to parliament

Feb 17, 2012, 7:16 GMT

Athens - The Greek government was set to table a draft law in parliament Friday on fresh cuts to pensions and benefits for large families - one of the last conditions demanded by international creditors in exchange for bailout loans.

Athens planned to pass the emergency draft law by Sunday, to be ready in time for a Eurogroup meeting of eurozone finance ministers on Monday.

So far, Greece has fulfilled only two of three conditions set by the Eurogroup for a 130-billion-euro (170-billion-dollar) aid package: approval by parliament of a 3-billion-euro austerity and economic reform package, and written assurances from political leaders that they would stick to the bailout terms even after elections, expected in April.

The third condition, closing a 325-million euro budget gap, was an issue of debate between Brussels and Athens for several weeks.

Athens decided it would plug the budget gap by making additional cuts to main and auxiliary pensions and to allowances for families with four or more children, according to the draft law.