Government Source: Greece Asks EU for Loan Extension

Greece on Thursday formally asked the EU for a loan extension which would buy the cash-strapped nation time to unveil new anti-austerity reforms, a government source said.

"The request has been sent" to Brussels, the source said, with Greek media reports noting that Athens is requesting a six-month assistance package.

Athens is trying to sidestep the restrictions of a full-blown bailout, but a number of eurozone hardliners including Germany are likely to resist the move.

"Our proposition will be written in such a way that it will cover both the demands of the Greek side and the head of the Eurogroup," Finance Minister Yanis Varoufakis told reporters late on Wednesday.

Europe and Greece are racing to reach a deal to avoid a Greek exit from the eurozone -- dubbed a "Grexit" -- after talks in Brussels ended in acrimony on Monday with both sides digging in their heels.

The European phase of Greece's EU-IMF bailout expires on February 28, and Athens needs to find 11.9 billion euros ($13.5 billion) for bond repayments by August.