Debt crisis: Greece in 'final stretch' of forming coalition government

But there will be tough negotiations over ?31.2bn due for agreement in July. This will be paid only if Greece can show it is serious about implementing austerity measures, which are now at least two months behind schedule.

Antonis Samaras, leader of New Democracy and the likely prime minister, has promised to respect Greece's commitments, but as coalition talks began he said there should be amendments to the bail-out deal "so Greeks can escape from today's torturous reality".

Creditors like Germany have held out the possibility of extending a 2014 deadline to cut ?11.5bn in public spending, but say the substantive content of the bail-out cannot be changed. New Democracy and its potential partners want this deadline extended to 2016 and will pursue this goal "actively and aggressively".

Jean-Claude Juncker, head of the euro-group of finance ministers, said extensions to the fiscal timeframe could be considered but major changes were out of the question.

Ahead of a meeting of eurozone finance ministers in Luxembourg on Thursday, a senior EU official said it would be "delusional" and "stupid" not to adjust the loan agreement, as the economic environment had deteriorated both inside and outside Greece.

His comments supported the view of experts that Greece would need further external financing and.

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