September 20, 2012 / 5:28 PM / 5 years ago

Greek deal may be delayed past weekend: officials

ATHENS (Reuters) - The heads of the international "troika" team discussing Greece's bailout could leave Athens on Saturday without a final agreement on 12 billion euros of planned spending cuts, Greek officials said on Thursday.

The European Union, International Monetary Fund "troika" team visiting Athens has rejected some of the measures proposed by the Greek government, holding up final agreement on unlocking the next installment of Greece's 31.5 billion euro ($41 billion)bailout package.

"We would like to have the package finalized today but it's difficult," said a very senior Greek official, who spoke on condition of anonymity.

"The heads of the troika will leave at the end of this week or early next week. We must have 95 percent of the package of measures agreed by then."

Another official said the team would leave on Saturday.

The potential delay feeds uncertainty after tense scenes as the troika has ordered Greece go further in cutting wages and pensions as well as ending its taboo on firing civil servants.

Prime Minister Antonis Samaras's government has insisted that savings on operating expenses will enable Athens to avoid the kind of cuts requested by the troika. Inspectors, wary after repeated failures by Greece to deliver, are skeptical.

Greek officials said the troika team, which returned to Athens this month after a month-long hiatus, had always intended to leave at the end of the week and are due back next week. Technical officials will remain to work on unresolved issues.

The second Greek official said that even if there was no deal by Saturday, that need not mean that the package would be delayed in parliament, which must approve the measures before the Eurogroup of finance ministers meet in Luxembourg on October 8.

Greece has acknowledged that the talks with the troika are "difficult" and officials have said the latest round of discussions on Wednesday were marred by "moments of tension".

Greece had earlier raised hopes of significant progress in the negotiations by saying the two sides had found agreement on measures worth 9.5 billion euros in the 11.7 billion euro package. The troika had initially rejected 4 billion euros in austerity cuts proposed by Athens, largely over contentious state sector reform and timid plans to fire civil servants.

Finance Minister Yannis Stournaras on Thursday reiterated that there was agreement on measures worth 9.5 billion euros. More cuts are expected to be agreed by Saturday.

'STOP ATTACKING GREEKS'

Samaras's fragile conservative-led coalition shows increasing signs of buckling under the strain of finding common ground over measures that no politician wants to be linked to.

A meeting on Thursday between Samaras and his Socialist and leftist allies failed to produce broad political agreement on the cuts, and talks were adjourned until next week.

"The troika should stop attacking Greek people," Fotis Kouvelis, head of the small Democratic Left party, told reporters after the meeting. "People have their limits."

The austerity plan - which targets savings over 2013 and 2014 - includes cuts to health and defense spending, a plan for a "labor reserve" to dismiss civil servants, and reductions in welfare and disability benefits.

Anti-austerity protests are picking up pace after the traditional August summer break. On Thursday, subway, city train and tram workers held a 24-hour strike, and major unions plan a general strike next week.

Editing by Ruth Pitchford

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