Greece, creditors edging closer to rescue deal

BRUSSELS (AP) — Greece and its rescue creditors edged closer to a deal on loans needed to avoid a potentially disastrous bankruptcy, but angry objections in Athens to some demands kept the talks on edge ahead of a key meeting this weekend.

The government on Friday agreed to key reforms that are close to what creditors have demanded before they release new loans, officials said on condition of anonymity because of the sensitivity of the negotiations.

Together, the events could push Greece to leave the euro, a move that would drive the country back into a deep, long recession and shake European and global markets.

Greece offered a first set of concessions earlier this week and added more on Friday, including a proposal to slash state spending on pensions — something creditors had demanded.

According to the text of the creditors' proposals seen by The Associated Press, Athens was offered an extension to its bailout program through November, with loans worth 15.5 billion euros.

Worried Greeks have been pulling their money out of banks, fearing a failure in the negotiations could lead to financial turmoil and a restriction on banking transactions.

Elected in January, Tsipras' left-wing government has long been adamant it would not impose any new austerity measures, after cuts made in previous years put the country through years of recession and caused mass unemployment and poverty.