Greek government approves debt deal: PM's office

ATHENS, February 10, 2012 (AFP) - Greece's coalition government early Saturday "unanimously" approved a eurozone debt deal and accompanying austerity measures to avert a looming bankruptcy, the prime minister's office said.

"There was unanimous approval" of the deal which saves Greece from a disorderly default in March, Prime Minister Lucas Papademos' office told AFP.

The semi-state Athens News Agency said the deal was submitted to parliament for a vote Sunday but government spokesmen could not be reached for comment.

Agreement on austerity measures demanded by Greece's EU-IMF creditors had also been reached earlier in the week according to Papademos, but the coalition's junior partner on Friday defected from the government in protest at the cuts.

Greece was explicitly told by its eurozone partners this week that it must agree to further austerity measures in order to secure the release of further loans under the 130-billion-euro ($171 billion) bailout pending since October.

The rescue fund is essential to stave off bankruptcy on March 20, when Athens must repay nearly 14.5 billion euros in maturing debt.

The belt-tightening measures have sparked protests and two general strikes this week.

Papademos on Friday told the cabinet that the country faces "uncontrolled chaos" without a debt deal.

"A disorderly default would plunge our country in a disastrous adventure," Papademos told the cabinet after the resignation of six members of the government, including the far-right minister for transport.

"It would create conditions of uncontrolled economic chaos and social explosion... sooner or later, (Greece) would be led out of the euro," he warned. "This is an hour of historic responsibility," the PM added.