Greek politicians, creditors reach agreement on cutbacks

ATHENS, Greece - Greece says it has struck a deal with its bailout creditors on adopting harsh new austerity measures needed to avoid a disastrous bankruptcy.

Prime Minister Lucas Papademos' office says negotiations with representatives of the European Union, the European Central Bank and the International Monetary Fund have been successfully concluded.

A statement from Papademos' office Thursday said leaders of the parties in the coalition government have accepted the result of talks with the three organizations, collectively known as the troika.

It says that there is "a general agreement on the content" of Greece's new financing program, worth C130 billion ($172 billion), without which the country would be forced to default on its bond payments next month.

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  Greek Prime Minister Lucas Papademos, left,chats with finance chief Evangelos Venizelos, after their meeting with Charles Dallara, the head of the Institute of International Finance, which represents Greece's private bondholders, in Athens, on Thursday, Jan. 12, 2012. (AP / Petros Giannakouris)