Eurogroup Chairman Jean-Claude Juncker has called on Cyprus and its creditors to reach an agreement on the terms of the proposed bailout "in a timely manner," while offering to discuss the matter with Eurozone finance ministers as early as next week.
"I call on Cyprus and the Troika to conclude on the proposed terms of a programme in order to reach agreement on an adjustment package in a timely manner," he said in a statement issued after the Eurozone finance ministers meeting on Monday.
Juncker said the Eurogroup will discuss the capital needs of Cyprus' financial sector and its implications for program financing on December 13.
Juncker also confirmed that Spain will receive EUR 39.5 billion from the euro area bailout fund to recapitalize its banks by next week. Earlier on Monday, Spain had forwarded an official request for more aid for its ailing banking sector.
Spain has already availed EUR 30 billion in July for bank recapitalization, out of the EUR 100 billion offered by its European partners in June.
Juncker, however, did not comment on the Greek debt buy back program launched early on Monday. But he indicated that Portugal and Ireland is unlikely to get equal treatment as that of Greece in their bailout programs.
Eurogroup is widely expected to approve the EUR 44 billion worth of loan tranche to Greece at next week's meeting. However, Greece has to successfully complete the debt buyback program before December 13, in order to receive the aid.
Under the new program, Greece would spend EUR 10 billion to buy back its bonds. They will be paid in six-month bonds from the European Financial Stability Facility, or EFSF.
Greece has set minimum and maximum prices of 32.1 percent and 34.1 percent of face value for the buyback, topping market expectations. This is above the closing prices as on November 23, which euro-area finance ministers had set as the maximum.
Investors have time until 5 pm London time, December 7, to sign up to the scheme and the expected settlement date is December 17. The buyback will be conducted through a modified Dutch auction.
Under the modified Dutch auction procedure, Greece has the sole discretion to determine the principal amount of each series of designated securities, its purchase price and the principle amount of EFSF Notes the country intends to deliver in exchange for the Designated Securities.
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