Merkel warns on Greek’s next tranche

German Chancellor Angela Merkel today said  it would not be possible to pay out the next tranche to Greece without rapid progress on its second rescue package, including the voluntary restructuring agreement with Greek bondholders.

An agreement with Greek bondholders must come soon for Greece to receive a vital second bailout, Merkel told a joint news conference with French President Nicolas Sarkozy in Berlin.

"The second Greek aid package, including this [debt] restructuring, must be in place quickly."Otherwise it won't be possible to pay out the next tranche for Greece," she told a news conference.

Greece needs a second EU-IMF rescue worth 130 bn euros to avoid a default on its debts and possible exclusion from the eurozone.

Greek's voluntary restructuring programme with its bondholders would entail a write-off  of 50 per cent of the Greek bonds' value.

Merkel called Greece "a special case" but insisted that "no country should be excluded from the eurozone".