Greek withdrawal from the eurozone

Within moments after statements of a deal between Greece and its eurozone creditors leaked out, the news instantaneously circulated around the world and in time to significantly boost North American markets.

Greece and its eurozone partners seem to be on the verge of striking a compromise over the extension of the country's financial rescue package.

Eurozone finance ministers have drafted a common text with Greece that Greek and eurozone officials said on Friday could form the basis for an agreement to extend Athens' bailout package.

Officials stressed that there was as yet no formal agreement in the full meeting of the Eurogroup of 19 finance ministers.

Greece's Prime Minister Alexis Tsipras on Friday said he felt certain eurozone finance ministers would grant his country's request for a six-month extension to its EUR 172 B bailout.

Germany, however, has demanded "significant improvements" in Greek reform commitments, Reuters reported.  

Top European officials were engaged in furious diplomacy on Friday to build a bridge between fiercely divided Greek and German ministers whose agreement is needed to solve a bitter row over Greeces huge debt.

By Jan Strupczewski & Renee Maltezou

Greece's leftist prime minister said on Friday he was certain eurozone finance ministers would accept Athens' request for an extended loan but Germany demanded "significant improvements" in Greek reform commitments.

The euro fell to a one-week low against the dollar on Friday on concerns that a crucial meeting on Greece's request for a six-month loan extension could end without easing the country's funding crisis.

Arriving for what promises to be another tense Eurogroup summit in Brussels on Friday, Greek Finance Minister Yanis Varoufakis said the Greek government "has gone not the extra mile" but "the extra 10 miles" in honoring the demands of the country's creditors.

"Hopefully at the end of this we?ll come out with some white smoke," he said.

German Chancellor Angela Merkel indicated that "improvements" were needed to the substance of a proposal submitted by Greece for an extension to its loan agreement a few hours before a crucial meeting of eurozone finance ministers in Brussels.

By Paul Tugwell and Nikos Chrysoloras

Germany and its allies are ready to let Greece leave the euro unless Prime Minister Alexis Tsipras accepts the conditions required to extend his country?s financial support, according to Malta?s finance minister, Edward Scicluna.