Eurozone finance ministers meet later in a 3rd attempt to agree on unlocking a €31 billion tranche of aid for Greece.

Yesterday the French Finance Minister indicated they are close to a solution for Athens.

The country which is on the brink of bankruptcy has been waiting on the cash since the summer.

Eurozone ministers have held numerous meetings and conference calls over the last 2 weeks to decide how Greek debt could be cut to a more sustainable 120% in 8 to 10 years.

As it stands it is seen at almost 190% of GDP next year.

Without agreement on how to reduce the debt Eurozone ministers and the International Monetary Fund (IMF) do not want to resume payments of loan tranches to Athens even though Greece has met all the conditions because they have no guarantee on whether the need for emergency financing will ever end.

Options available

So far the options for debt reduction under consideration include reducing interest on already extended bi-lateral loans to Greece from the current 150-basis points above financing costs.

France and Italy would like to reduce the rate to 30-basis points while Germany and some other countries insist on a 90 points margin.

Another option is to defer interest payments on loans to Greece from the European Financial Stability Facility (EFSF) by 10 years.

The European Central Bank (ECB) could forego profits on its Greek bond portfolio but not all Eurozone members are prepared to forego their profits with the German Bundesbank among them.

Greece could also buy back its privately-held bonds on the market at a deep discount with gains from the operation depending on the scope and price.