Greece says it is close to deal with lenders over bad bank loans

Greece said on Wednesday it was close to a deal with international lenders on regulating non-performing loans, a thorny issue which has delayed a disbursement of aid under its latest multi-billion euro bailout.

"On Monday all issues will be finalised ... and at the Euro Working Group there will be a decision to release the installment and the funds for the banks," Government Spokeswoman Olga Gerovasili told state broadcaster ERT, referring to deputy finance ministers of the euro zone.

A two billion euro cash disbursement and 10 billion euros to recapitalize four systemic banks was delayed this week amid disagreement over the level of protection homeowners should have from foreclosures for non-payment of debts.

Athens insists resolving the issue should not result in thousands of Greeks at risk of losing their homes.