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The intention is to ensure that Greece‘s long-term debts are sustainable. Banks, pension and hedge funds, and other private-sector holders of Greek debt are expected to swap their current bonds for new ones worth 50 percent less than the original face value, with longer repayment terms and a lower interest rate. They are also expected to get a 30-billion-euro ($39.82 billion) payment as part of the bond-swap deal.

Representatives of the Institute of International Finance, which has been leading the talks for private bondholders, had a “constructive meeting” with Mr. Papademos, IIF spokesman Frank Vogl said.

Mr. Papademos and Finance Minister Evangelos Venizelos soon will brief the rest of the 17-nation eurozone on the proposed deal, Mr. Vogl said.

The meeting of eurozone finance ministers could happen as soon as Thursday in Brussels, according to officials, although that will depend on an agreement in Athens on the terms of the second bailout.

“We expect that such a meeting … is meant to take place,” German Finance Ministry spokeswoman Marianne Kothe said. “The important thing is that Greece has to create certain preconditions for it to happen, and that is, according to my knowledge, not yet the case.”

If political leaders accept the demanded austerity, Greek officials say a Cabinet meeting will approve the deal, likely later Wednesday. Parliament then will have to vote on the deal over the weekend.

Ratification should prove simple, provided all three coalition partners back the deal, as they control a combined 252 of Parliament’s 300 seats — enough to carry the vote even if there is a limited backbencher rebellion.

Greece has been kept solvent since May 2010 by payments from a 110-billion-euro ($145 billion) international rescue loan package. When it became clear the money would not be enough, a second bailout was decided last October.

The Greek government already has accepted that it must cut 15,000 state jobs in 2012 to get the new bailout, as well as reduce 2012 spending by a further 3.3 billion euros ($4.3 billion), lower wage costs in the private sector and recapitalize banks without nationalizing them.

But disagreement remains on the extent of those cuts between party officials, who are set to face national elections in late April — after the debt deals have been sealed and implemented.

The majority Socialists, main rival conservatives and the small right-wing LAOS party are also at odds over when the elections should be held.

The Socialists, who handed over power to Mr. Papademos in November and are trailing badly in opinion polls, want him to stay through parliament’s four-year term that ends in late 2013. But conservatives, buoyed by their lead in opinion polls, are demanding an April vote according to plan.

LAOS leader George Karatazferis criticized eurozone heavyweights France and Germany on Tuesday, saying they were carrying out an “aggressive humiliation of Greece” with their demands for new austerity measures.

A disorderly bankruptcy by Greece likely would lead to its exit from the eurozone, a situation that European officials have insisted is impossible because it would hurt other weak countries such as Portugal, Ireland and Italy.

Mrs. Merkel also argued strongly against the prospect.

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