Eurozone finance officials have voiced optimism that a deal to avert a disorderly Greek default is imminent and that key building blocks to resolve Europe's sovereign debt crisis are gradually fitting into place.
Europe's top economic official said an agreement between the Greek government and its private creditors on voluntary losses for bondholders would be complete within days.
European Economic and Monetary Affairs Commissioner Olli Rehn told the World Economic Forum in Davos that they were very close to a deal.
German Finance Minister Wolfgang Schaeuble, speaking on the same panel as Mr Rehn, said crafting a new rescue package for Greece was not easy because of past slippage in its performance, but it would be done in the coming days.
However, he cautioned that Athens would have to meet commitments to economic and fiscal reform that it had not delivered over the past two years and warned against giving Greece the wrong incentives.
Mr Rehn and Jean-Claude Juncker, chairman of the 17 eurozone finance ministers, have both said European governments and institutions may have to increase their support for Greece.
Spanish Economy Minister Luis de Guindos said the European Central Bank should not have to take a writedown on its holdings of Greek government bonds, bought at a discount to calm bond markets, since that could impair its monetary policy.
The ECB's governing council is debating whether and how to contribute to a package for Greece and has not yet taken a decision.
ECB sources said the bank opposes taking a haircut to avoid financing governments or setting a bad precedent, but many council members wanted to find a way to avoid making a profit on holding the bonds to maturity when others were taking losses.
Meanwhile, the government in Greece is continuing talks with private banks and insurers aimed at striking a deal to write-down debt and avoid a possible default.
Athens needs a deal quickly to avert a chaotic default when a major bond redemption comes due in March.
Progress was reported at discussions yesterday, amid mounting international pressure to come up with an agreement on the issue.
Greek Prime Minister Lucas Papademos and Finance Minister Evangelos Venizelos are leading the negotiations with the creditors group.
This third round of talks aims to reach agreement on a voluntary exchange of bonds that would wipe €100bn off the country's €350bn debt mountain.
Two previous rounds of talks stalled over the amount of interest to be paid on the remaining debt.
