ATHENS, Jan 12: Greece would need more funds from its European partners if private lenders fail to write off 100 billion euros of its debt, deputy finance minister Philippos Sahinidis warned on Thursday.

'If the participation (of private creditors) does not reach 100 per cent, greater support from our partners would be necessary,' said Sahinidis, according to the website of Athenian radio station Skai.

Sahinidis was reacting to a comment by IMF chief Christine Lagarde, who was quoted by German daily Handelsblatt saying that aid to Greece would have to be raised by a 'significant amount of tens of billions' of euros.

The Greek government signalled its optimism aboutnegotiations with private creditors to accept at least a 50 per cent loss on the Greek debt they hold, with government sources saying on Thursday that Athens hoped to have a deal by next week.

The writedown is a precondition for unlocking a second rescue package worth some 130 billion euros agreed in principle at an EU summit last October. Representatives of the private lenders are expected to hold an important meeting with Greek leaders at midday on Friday, Finance Minister Evangelos Venizelos said.

In addition, he added that 'we are expecting important news tonight,' referring to a meeting in Brussels of a working group on the Greek debt crisis.—AFP