European Central Bank confirms eleventh hour deal that should prevent Greek default

A last minute deal between the Greek PM Lucas Papademos and the leaders of the main political parties appears to have satisfied the EU and the International Monetary Fund (IMF) and saved Greece from a messy default. The deal was confirmed by European Central Bank President Mario Draghi (in picture).

News of a breakthrough broke when Greek sources claimed an agreement had been made earlier today. The news was confirmed by Draghi, saying at a press conference in Frankfut that Papademos had told him an agreement had been reached and was backed by all major political parties. The eleventh hour deal comes in time for the meeting scheduled in Brussels today of eurozone finance ministers, who are expected to discuss the proposed second bailout for Greece. No agreement was reached by this morning ( February 9 ), despite talks continuing late into the previous night. Greece is seeking a second bailout but the EU and the IMF have refused to shell out more funds until the Greeks commit to further austerity measures. More protests were already planned and if the agreement includes the pension cuts that prevented an earlier deal, angry public reaction in Greece seems almost certain to follow. Liam Lever, liam@romania-insider.com