(Reuters) - Greece's government signaled the biggest concessions so far as talks with lenders on a cash-for-reforms package started in earnest on Thursday, but tried to assure leftist supporters it had not abandoned its anti-austerity principles.
Prime Minister Alexis Tsipras's three-month-old government is under heavy pressure at home and abroad to reach an agreement with European and IMF lenders to avert a national bankruptcy. A new poll showed over three-quarters of Greeks feel Athens must strike a deal at any cost to stay in the euro.
An enlarged team of Greek negotiators began talks with the so-called Brussels Group representing the euro zone, the International Monetary Fund and the European Central Bank to discuss which reforms Greece will turn into legislation rapidly in exchange for aid.
The talks are expected to continue through the May Day holiday weekend until Sunday, with Tsipras willing to step in to speed things up if necessary, a Greek official said. In a sign of seriousness, both sides agreed on a news blackout at the meeting, a euro zone official said.
Greece wants an interim deal by next week, hoping this will allow the ECB to ease liquidity restrictions before a 750 million euro payment to the IMF falls due on May 12. Athens has suggested it will struggle to pay the installment.
Before that, it also has to repay 200 million euros to the IMF by May 6, although this is expected to be less of a problem.
The head of the Eurogroup of euro zone finance ministers, Jeroen Dijsselbloem, said at a meeting with members of the Dutch parliament that the bloc was prepared for any outcome.
Asked whether there was a "plan B" should Greece default or be forced out of the euro zone, he said: "(Is) the euro zone prepared for eventualities, the answer to that is: 'yes'.