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ET:Merkel to meet IMF chief in euro crisis flurry
 
BERLIN: German Chancellor Angela Merkel was due to meet IMF chief Christine Lagarde here later Tuesday for talks set to focus on Greece as it races to reduce its debt in a bid to secure more aid.

A day after Merkel hosted French President Nicholas Sarkozy for their first tete-a-tete of 2012, she will press on with an intensive three-day diplomatic push as the eurozone crisis shows no signs of abating.

Greece must ensure the "rapid implementation" of reform measures, she told reporters after the talks with Sarkozy, warning that "otherwise it will not be possible to pay the next (aid) tranche to Greece.

"But this is what we want and we want Greece to remain in the eurozone," she underscored, adding that Greece would feature in her talks with the chief of the International Monetary Fund.

Her meeting with Lagarde is due to take place at 1900 GMT after the IMF head holds talks with German Finance Minister Wolfgang Schaeuble. No press conferences are scheduled.

On Wednesday, Merkel is due to host Italian Prime Minister Mario Monti, whose government is racing to tackle his country's financial woes with a draconian austerity plan.

Athens again faces intense pressure after the IMF reportedly expressed growing doubts over Greece's long-term ability to reduce its debts and ahead of a crucial assessment of its latest efforts.

International auditors are due back in Greece next week to take stock of the country's economy after Prime Minister Lucas Papademos warned of an "uncontrolled default" in March if no further aid was forthcoming.

Having already received most of a 110-billion-euro ($140 billion) rescue package from the EU and IMF in 2010, the eurozone reached a preliminary accord for a second 130-billion-euro Greek bailout in October.

However, this rescue package depends on Greece reaching a deal with private investors to accept at least a 50-per cent loss on the Greek government bonds they hold, saving Athens another 100 billion euros.
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