UPDATE 1-Euro zone, IMF mull 2-year extension for Greek bailout-Greek finmin

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LUXEMBOURG, Oct 9 (Reuters) - International lenders areconsidering giving Greece two more years to reach its budgetdeficit reduction targets, and the extra time could be financedwithout more money from the euro zone, Greek Finance MinsterYannis Stournaras said.

"It is now on the table by all members of the troika,"Stournaras told reporters of the 2-year extension.

"All the excercises that we are doing now they assume thatthe programme will last up to 2016, that ... 4.5 percent of GDP(for the budegt deficit) will be achieved in 2016 rather than in2014," he said .

"The implicit assumption is that the programme will beextended despite the fact that it remains extremelyfrontloaded," he said.

Asked whether this means that no more additional money fromthe EU is needed, he said: "Yes, that is my view."

Asked what the other finance ministers said on this: "Wehave just started discussions, there is no decision yet."

Extending the prgramme by two years would create a fundinggap of about 12 billion euros, which could be covered by 8billion euros the International Monetary Fund had set aside incase of a deeper than expected recession, Stournaras said.

Greece could also benefit from "substantial interestsavings" as a result of lower borrowing costs of the EFSFbailout fund, he added.

(Reporting By Eva Kuehnen; writing by Jan Strupczewski)

((jan.strupczewski@thomsonreuters.com)(+32 2 287 68 37)(ReutersMessaging: jan.strupczewski.reuters.com@reuters.net))