EU-IMF talks centre on €40bn cut to Greek debt Under draft proposals, eurozone creditors would agree to cut the cost of interest rates that Greece pays on its loans from 150bps to 50bps after the country reaches primary surplus of 4.5pc of GDP. The IMF demand for a 20pc reduction in Greek debt either means OSI or new money in the form of bond buy backs, low interest rates and deferred payback of loans. None of that is easy," said an official. Greece's private creditors have written off more than €100bn in debt and the IMF has urged the European Central Bank and eurozone governments to accept a haircut on loans. But the ECB, Germany and the Netherlands have refused to take losses, arguing that it breaches the legal conditions of EU law and the loans made to Greece. As well as reducing the debt, the eurozone and IMF must also agree €33bn in extra financing costs to allow Greece a two year breathing space on EU IMF austerity targets. As talks began on Monday night, Olli Rehn, the EU's economic and monetary affairs commissioner, expressed his frustration the delay caused by the IMF dispute despite general agreement that the Greek government was on track with austerity measures. "It is essential to take a decision on the disbursement of the next tranche in the course of today," he said. Greece has delivered, now it is delivery time for the Eurogroup and the IMF. Leaving after 12 hours of negotiations, Mario Draghi, the ECB president, hailed a deal that will see the euro's central bank give profits, worth up to €15bn, made on Greek bonds back to Greece to help reduce its debt. "I very much welcome the decisions taken by the ministers of finance," he said. They will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece.