Some eurozone countries have strong doubts over whether a second massive bailout can actually save Greece, officials say, even as Athens rushed to meet tough conditions to qualify for the 130 billion euro ($A160.27 billion)rescue.
The wrangling over Athens' aid money comes after almost two years of frantic efforts to save Greece from bankruptcy and secure its place in the 17-country currency union.
But circumstances have changed since the eurozone agreed on a first 110 billion euro rescue for Greece in May 2010.
Several politicians - especially in rich euro countries like Germany, the Netherlands and Finland - have grown tired of Greece repeatedly missing budget targets and failing to implement promised cuts, reforms and sales of state assets. The measures that have been put into practice, meanwhile, have pushed the country into steep recession, with its economy shrinking seven per cent in the final quarter of 2011 from a year earlier.
At the same time, some policymakers are optimistic that the eurozone is now strong enough to handle a default by Greece, which is one of the smallest economies in the currency union, responsible for only about two per cent of its economic output. Other politicians, however, are concerned that the shockwaves of a disorderly Greek default would be felt across the rest of Europe and the world's financial markets.
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"There are many in the eurozone who don't want us any more," Greece's Finance Minister Evangelos Venizelos told the country's president, Karolos Papoulias, during a meeting to inform him of the latest developments. Greece, Venizelos added, had to persuade the sceptics that the country could stay in the currency union and regain lost ground in reforming its economy.
"We are facing a situation that is particular because we are constantly being given new terms and conditions," the finance minister said.
Venizelos' negative assessment was backed by an official in Brussels.
"There is resentments, mistrust, really bitter debate," said a European official, who has been briefed on recent talks between eurozone finance chiefs. The official was speaking on condition of anonymity because of the sensitivity of the topic.
In Berlin, German Chancellor Angela Merkel's spokesman, Steffen Seibert, sharply rejected a question about market rumours that Germany has decided a Greek bankruptcy is acceptable.
"I can say very clearly for the German government that these rumours are wrong - there is no such decision by Germany," he said, adding that Germany is working with others in Europe to find "a practicable way out of the crisis for Greece" with the second rescue package and a bond swap with private creditors that seeks to cut Greece's debt by about 100 billion euro.
However, tensions between Athens and its creditors remain. A meeting between eurozone finance ministers planned for Wednesday was cancelled on Tuesday night after Athens failed to deliver in time on demands made the previous week. Eurogroup chairman Jean-Claude Juncker said he was still missing details on how to save an extra 325 million euro as well as written assurances by main political party leaders that they will stick to a second bailout program after elections expected for April. The ministers will hold a conference call on Wednesday evening instead, and meet on Monday.
Officials said the 325 million euro should be secured by the end of the day. On the written assurances, Socialist party head George Papandreou sent his letter on Tuesday night, officials said. Conservative party leader Antonis Samaras sent his Wednesday.
"We will remain committed to the program's objectives, targets and key policies," wrote Samaras, whose party is most likely to win elections expected in April. However, he said policies might have to be modified in order to help the economy recover from the deep recession it is currently in, although he underlined these would not change the ultimate targets in reforming the economy.
But the European official briefed on recent talks said even those assurances may not be enough.
"People don't trust the Greeks and that is the main element," he said.
