The Greece to draw the new EU - IMF loan for reforms: report (AFP)

Athens (AFP) - Greece will receive a new loan of Europe and the Fund International Monetary in exchange for reductions additional costs and a faster pace of privatisation, a newspaper report said Tuesday.

Top-selling Ta Nea daily said Athens had concluded an agreement with its "troika" of creditors, the European Union, IMF and the European Central Bank - which includes "new loans", according to sources in Brussels.

Eleftherotypia daily said that the new loan may be up to 60 billion euros ($86 billion) to allow the Greece meet its 2012 payments schedule from.

In return, the Government will make further reductions up to 10 per cent paid higher officials and impose a stricter hiring process, replacing only one in ten jobs available, said Ta Nea, which is politically close to the Socialist Party.

Also, a new entity called public, independent of the State property Fund, will be created to oversee the drive for privatization, the two dailies said.

The Greece is currently locked in negotiations with the representatives of three organizations that year last to the rescue of the country with a loan of 110 billion euros ($157 billion).

He needs a regular payment of the loan, EUR 12 billion, to pay its bills in July.

But the IMF has threatened to withhold its share of the funding without an agreement more extensive that will make the Greece debt - more than 350 billion euros - sustainable.

The Greek Finance Minister George Papaconstantinou said that the talks should conclude by Wednesday at the latest.

Ta Nea, said that an agreement will be announced on Friday afternoon, after the close of European markets.

"The EU - IMF report, note that the Greece debt is unsustainable and noted delays in the programme of structural reforms and fiscal adjustment," he said.

A Summit of the euro area of emergency for the June 5-6 should also to be announced Friday, said the daily.

At least three States of the eurozone - the Finland, the Netherlands and heavyweight Germany - expressed reservations towards a Greek new rescue plan.

The privatization drive, designed to raise awareness of some 50 billion euros by selling the choice State assets, such as the Hellenic telecommunications organization and part of the public power Corporation has met with a union opposition.

Greek unions are meeting Wednesday to finalise an another general strike, scheduled to coincide with the mobilisation of European workers on 21 June.

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