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Eurozone to bailout Greece with conditional aid package

Eurozone finance ministers have delayed their initial loan of 12bn euros until parliament passes new

Eurozone finance ministers have postponed their decision on a 12bn euro ($17bn; £10bn) loan to Greece until it introduces further austerity measures.

This aid will only be released if Greek parliament passes 28bn euros of extended spending cuts and economic reforms.

After several meetings with the 17 eurozone finance ministers, Luxembourg's Prime Minister Jean-Claude Juncker said he was confident there would be a second bail-out for Greece.

The Greek government hopes this bail-out will equal the size of its first. Athens says they will need at least a 12bn euro portion of the package by mid-July or they will face defaults on their debts.

Belgian Finance Minister Didier Reynders says Greek Prime Minister George Papandreou must make it through Tuesday's confidence vote before Greece can receive any of these funds.

"To move to the payment of the next tranche, we need to be sure that the Greek parliament will approve the confidence vote and support the programme, so the decision will be taken at the start of the month of July," Reynders said.

Thousands of people have been congregating outside of the parliament building in Athens for the past week, protesting further cuts while shouting that their government is full of "thieves" and "traitors." Some of these riots have taken a violent turn, forcing police involvement.

Despite the objections of the people, Papandreou has been appealing to the government to accept his plan for tax increases, spending cuts and privatisation. His plan is projected to raise 50bn euros by 2015.

"The consequences of a violent bankruptcy or exit from the euro would be immediately catastrophic for households, the banks and the country's credibility," Papandreou said.

After a three-day meeting in Luxembourg that ended Monday, the finance ministers concluded that they would not release the 12bn euros until Greek parliament passed new finance and privatisation legislation.

Both Greek parliament and other eurozone governments realize Greek unity is necessary to achieve financial and economic restoration.

The finance ministers issued a statement urging the Greeks to "support the programme's main objectives and key policy measures to ensure a rigorous and expeditious implementation".

"Given the length, magnitude and nature of required reforms in Greece, national unity is a prerequisite for success," the statement continued.

In addition to loans from eurozone countries, the aid package will most likely include funds from the private sector, in the form of investments in new and maturing Greek bonds.

"Ministers agreed that the required additional funding will be financed through both official and private sources and welcome the pursuit of voluntary private sector involvement in the form of informal and voluntary roll-overs of existing Greek debt at maturity for a substantial reduction of the required year-by-year funding within the programme, while avoiding a selective default for Greece," the statement said.

The plan is predicted to fund Greece through 2014 and total 120bn euros.