Greek gov't searches for funds amid fresh speculation about third bailout

The government on Monday scrambled to find ways to raise much-needed funding amid renewed speculation about a third bailout for Greece.

Finance Minister Yanis Varoufakis met with his deputies and other officials to discuss ways of covering the country?s funding needs and debt obligations, which include repayments to the International Monetary Fund. A senior ministry official referred after the talks to ?alternative solutions for tackling issues of liquidity in March.? These are believed to include the cash reserves of state bodies; the government may tap around 2 billion of the total 3.5 billion euros they hold.

The first test comes Wednesday, when the government is to issue six-month treasury bills in a bid to raise 1.4 billion euros and refinance maturing debt. The outcome is uncertain, however, as foreign investors appear reluctant to renew their positions while Greek banks have been warned against joining the sale.

Government spokesman Gavriil Sakellaridis sought to allay fears Monday. ?The Greek government has been exploring solutions... to ensure there won?t be a single problem with repaying the IMF loan, or its funding obligations in March,? he said.

He also confirmed that Greece?s agreement with creditors to extend its loan program by four months would not go to a vote in Parliament though it would be debated. Meanwhile the government presented the first of a series of proposed reforms that will be voted on by MPs. The bill, aimed at tackling the humanitarian crisis, offers free electricity and food to thousands of households and rent support for up to 30,000 families.

The move came amid mounting pressure from Greece?s international creditors for officials to push forward economic reforms ahead of another Eurogroup...