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Greek leaders agree on austerity pact for bailout

Updated at 10:03 a.m. EST

Greek political leaders have reached a deal with EU and IMF lenders on reforms required in return for a new bailout, the office of Prime Minister Lucas Papademos said in a statement on Thursday.

"The consultations between the government and the troika on the issue which remained open for further discussion were successfully completed this morning. The political leaders agreed on the outcome of these talks," Papademos' office said in a statement.

"There is broad agreement on the content of the new programme ahead of today's Eurogroup meeting," the statement said.

Financial markets have been awaiting the deal which would allow Greece to avoid a disorderly default that could disrupt global markets.

Earlier, a spokeswoman for the office of Greek Prime Minister Lucas Papademos said the agreement with the majority Socialists and the conservatives will allow alternative cuts to those rejected early Thursday during a meeting of the three coalition party leaders.

She spoke on a customary condition of anonymity.

Although all the other cuts demanded by Greece's eurozone partners and the International Monetary Fund were approved, party leaders had balked at new pension cuts.

Reuters and The Associated Press contributed to this report.