Greece to request extension on Thursday

Athens is to submit a formal request for a loan extension on Thursday, according to Greek officials. The application is also expected to ask for tough austerity conditions to be removed.

Greece's current 240-billion-euro ($273-billion) bailout program will expire on February 28. The country says an extension is the only way to avoid a possible default, and eurozone exit.

The nation has received two major bailouts since 2010. Repealing the conditions attached to these, including harsh budget cuts, was the centerpiece of the newly-installed leftist government's campaign.

Reports circulating through the media have suggested that Greece may accept so-called "sensible conditionalities," although it is unclear what those may be.

Valdis Dombrovskis, the European Commission's vice president, told reporters on Wednesday at a press conference that both the eurozone and Greece were open to negotiating.

"The best way forward is to extend the existing program with its conditionality," he said.

European Commission President Jean-Claude Juncker echoed this, saying Athens must honor its contractual obligations.

Germany, who has been a vocal critic of increasing aid to Greece, said it was not open to making changes.

"Simply saying, 'we need more money again and we're not going to do anything any more,' and then insulting people, that absolutely won't work," Finance Minister Wolfgang Schäuble said on German television on Tuesday.

"Of course Greece would like to continue receiving credit".

Despite this, government spokesman Gabriel Sakellarides told Greek broadcaster ANT1 they were staying positive.

"We are coming to the table to find a solution. We want to believe we are on a good path and all the deliberations will find a common ground," he said.

'Time is of the essence'

Any changes to the current bailout program would have to first be approved by various European parliaments, including Germany.

Without an extension Greece's cash reserves are expected to begin running dry on February 24.

Months of negotiations have failed to bring about an agreement.

At a meeting in Brussels on Monday, EU finance ministers set conditions for its continued financial support of Athens, including Greece leaving reforms in place.

Greece has signaled its desire to overturn many of these measures, including raising the minimum wage.

But Germany's Schäuble said doing this would ruin any chance of Greece getting its requested delay granted.

"It can't and won't be the case that you go for an extension without the agreed reforms," he said on Tuesday.

The European Central Bank (ECB) is also debating whether or not it will continue proving emergency lending assistance to the country's crippled banks.

US Treasury Secretary Jacob Lew has also pushed Greece to "find a constructive path forward in partnership with Europe and the IMF," saying time is of the essence.

an/kms (dpa, AFP, AP, Reuters)