Greece not 'out of woods' yet says top EU official

ATHENS — The European Central Bank was checking up on how well Greece is meeting its international bailout obligations on Wednesday, a day after Germany’s finance minister said a third aid programme would be needed to keep Athens afloat. Joerg Asmussen, a member of the ECB’s executive board, was to meet Greece’ prime minister, finance minister and central bank governor, and to have talks with Greek business leaders.

LONDON/BRUSSELS — The need for a new rescue program for Greece promises a drawn-out drama of late-night negotiations but is unlikely to trigger the sort of crisis that has threatened the breakup of the euro in the recent past. That the collapse of the single currency is no longer an immediate danger reflects the solidity of the political bargain that saved Greece a year ago.

In the past week, as I expected, the ECB, Troika, German officials and others have all warned Greeks to not vote for Alexis Tsipras and his radical-left party Syriza. The question is will it backfire. I suggest it already has. The pertinent question is whether it backfire enough to matter. Please consider Greeks rail against 'crude' German editorial.

ATHENS/BRUSSELS — Greece formally requested a six-month extension to its euro zone loan agreement on Thursday, offering major concessions as it raced to avoid running out of cash within weeks and overcome resistance from skeptical partners led by Germany. With its EU/IMF bailout program due to expire in little more than a week, the government of leftist Prime Minister Alexis Tsipras urgently needs to secure a financial lifeline to keep the country afloat beyond late March.

Gold Prices/Fixes/Rates/Vols - (Bloomberg) Gold is lower in all major currencies today but remains well bid near the $1,300/oz level. Physical demand, particularly from China, remains very robust and premiums high at over $30 per ounce overnight.

Paris (AFP) - The top credit rating agencies piled more pressure Friday on Greece as the country scrambles to negotiate a new debt deal with its European creditors.

Cyprus agreed to the outlines of an international bailout, paving the way for 10-billion euros (US$13-billion) of emergency loans and eliminating the threat of default. The accord between Cyprus and the “troika” representing international lenders was reached in overnight talks in Brussels and ratified by finance ministers from the 17-nation euro area. “It’s in best interest of the Cyprus people and the European Union,” Cyprus President Nicos Anastasiades told reporters.