Greek Leaders OK New Cuts

Greece says it has struck a deal with its bailout creditors on adopting harsh new austerity measures needed to avoid a disastrous bankruptcy. Prime Minister Lucas Papademos' office says negotiations with representatives of the EU, the European Central Bank, and the IMF have been successfully concluded. A statement from Papademos' office today said leaders of the parties in the coalition government have accepted the result of talks with the three organizations, collectively known as the troika.

It says that there is "a general agreement on the content" of Greece's new financing program, worth $172 billion, without which the country would be forced to default on its bond payments next month. (More Greece stories.)