Germany holds up Greek bid for loan extension

Athens - Germany rejected a Greek proposal for a six-month extension to its eurozone loan agreement on Thursday, saying it was "not a substantial solution" because it did not commit Athens to stick to the conditions of its international bailout.

Berlin's stance, describing the carefully worded Greek letter as a "Trojan horse" for shirking commitments, set the scene for tough talks at a crucial meeting of eurozone finance ministers on Friday. Greece's leftist-led government is scrabbling to avoid running out of money within weeks and will face pressure to make further concessions in Brussels.

As the biggest creditor and EU paymaster, Germany has the clout to block a deal and cast Greece adrift without a lifeline, potentially pushing it towards the eurozone exit. But some officials in other capitals saw the German response as tactical and forecast agreement by the weekend after more wrangling.