Euro zone finance ministers and the International Monetary Fund will seek to unfreeze the second bailout package for Greece on Monday, but they first need to agree if some of the official loans to Athens might eventually be forgiven to cut Greek debt.   Euro zone ministers and deputies have conferred numerous times over the last two weeks to decide how Greek debt, seen at almost 190% of GDP next year, could be cut to a more sustainable 120% in 8-10 years.

Without agreement on how to reduce debt, euro zone ministers and IMF do not want to resume loan tranches’ payments to Athens — even though Greece has met all the conditions — because they have no guarantee if need for emergency financing will end. The key question is: can Greek debt become sustainable without the euro zone writing off some loans?