Country Bailout, Greece Debt Crisis | featured news

By insisting that it receive collateral from Greece in return for aid, Finland threatens to upend an agreement that euro zone countries made in July to expand the E.U. bailout fund.

Greece’s finance minister has called on the EU to implement “fully and immediately” an agreement reached last month overhauling the eurozone’s rescue fund and extending Greece a €109 billion ($157 billion) bailout. The finance ministry says Evangelos Venizelos wrote to senior officials, including European Central Bank President Jean-Claude Trichet, EU economic commissioner Olli Rehn and eurozone finance ministers. Excerpts of the letter were released Sunday.

Riot police fired tear gas at youths hurling rocks and petrol bombs near the Greek finance ministry Tuesday, trying to quell the anger unleashed during mass protests and a general strike as parliament debated new cost-cutting measures.

Under the plan, French banks would give Athens more time to pay back loans as they come due over the next three years.

Greece has secured a second bailout from the European Union and the International Monetary Fund, and it too will be on the order of €110 billion, Prime Minister George Papandreou said.

Hours of talks between eurozone finance ministers on the imploding finances of Greece broke up early Monday morning without the ministers signing off on a vital installment of rescue loans needed to avoid bankruptcy next month.