Greek debt negotiations 'on a knife edge': finance minister

(ATHENS) - Negotiations with the EU and the IMF on a critical new bailout for Greece were "on a knife edge," the Greek finance minister said on Saturday, adding that the marathon talks had to conclude by Sunday night.

Evangelos Venizelos spoke of a "very thin line" between success and failure after a "very difficult" telephone conference with fellow eurozone ministers, adding: "We are on knife's edge... everything must be concluded by tomorrow night."

Greece has been negotiating with the EU, IMF and European Central Bank on further action needed to unlock a rescue deal worth 130 billion euros ($171 billion).

Pressure is also mounting on Greece to strike a deal with private lenders to wipe out part of its debt, as Athens faces loan repayments of 14.4 billion euros ($19 billion) on March 20.

Venizelos said two major points of contention with the EU and IMF remained open -- controversial labour cost cuts, and new fiscal measures to address slippage to deficit targets owing to a greater-than-forecast recession.

He added that the time had come for the coalition of political leaders backing the Greek interim government to make "a decision and a commitment" to pave the way for agreement.

"We are the point where there must be a decision and a commitment by the leaders of the three political parties backing the government," Venizelos said.

Prime Minister Lucas Papademos is expected to summon the leaders of the socialist, conservative and far-right parties backing his government to a meeting on Sunday.

But the outcome is unclear, as all three parties have expressed misgivings about the additional fiscal reforms demanded by Greece's creditors.