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Greek Prime Minister George Papandreou has just asked the ministers in his cabinet to prepare their resignations, so that they are handy without holding a new meeting of the Council of Ministers.

He informed them that negotiations with New Democracy were in full swing and would finish that day. According to George Papandreou, the agreement between PASOK and New Democracy would be similar to that achieved by the parties in Portugal. It would include the requirement for binding the country to implement the European solution of October 27 for the Greek debt. The new Prime Minister, the Minister of Finance, whoever that would be, the president of the Bank of Greece and the leaders of both major parties would sign the agreement.

The meeting started an hour and a half after the time initially announced because of the ongoing negotiations for the establishment of the new Greek cabinet and lasted much less. Shortly after its beginning at 1.30 p.m., the Prime Minister left it to meet his close collaborator Nikos Athanasakis, the parliament speaker Filippos Petsalnikos and the long-time parliamentary chief Apostolos Kaklamanis. This confused the ministers somewhat.

During the meeting, deputy prime minister and Minister of Finance Evangelos Venizelos informed his colleagues of yesterday's meeting of the eurozone member states.

Meanwhile, unnamed sources confirmed the information about contacts between George Papandreou and Lucas Papademos. Again according to them, an initial agreement on the new Prime Minister with the leader of New Democracy, Antonis Samaras, had already been reached. It seems that he had changed his position concerning the involvement of politicians from his party in the coalition government.

"There will be political persons involved in the new government. The question about who will be the new Prime Minister must be solved immediately... We are awaiting announcements," New Democracy spokesman Yiannis Mihelakis said earlier to Antenna TV.

According to sources, the main opposition party is ready to relinquish the date of early elections in order for them to be held after February 19. Thus, New Democracy will actually fulfil the two main conditions that Lucas Papademos had laid down to assume premiership.

The other tipped "contender", the representative of Greece to the International Monetary Fund Panagiotis Roumeliotis, is on his way to Athens. He is bringing a letter from the international institution, stating the terms and conditions for the payment of the sixth bailout tranche and for its participation in the programme for the new loan.