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Deal on Greek debt expected shortly

EUROZONE officials said they are optimistic of a deal that will avoid a disorderly Greek default as key components to resolve the debt crisis are falling into place.

It is expected that a deal between the Greek Government and bank creditors on voluntary losses for bondholders could be signed off on within days.

"We are very close to a deal,” said European Economics Commissioner Ollie Rehn at the World Economics Forum in Davos.

“If not today then over the weekend and preferably in January, not February. We are very close," Mr Rehn she added.

German finance minister Wolfgang Schauble said while Greece has more work to do, he does not expect it to default on its debt.

Greece is due pay make bond repayments in March and needs a further €130bn in bailout funds from the EU/IMF/ECB troika.