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Greece to ask for loan extension: Report

Greece intends to ask for extension: Reports
Greece intends to ask for extension: Reports

Greece intends to ask for an extension of its loan agreement with the euro zone on Wednesday, a source in Brussels said, distinguishing this from the country's full bailout program.

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Speaking on condition of anonymity, the source said that Athens would request up to a six month extension but the conditions were still under negotiation.

U.S. stocks moved broadly higher on the report, and the S&P 500 hit a new high above 2,100. Yields on U.S. Treasuries hit 7-week highs. 

A protester waves a Greek national flag during an anti-austerity pro-government demonstration in front of the parliament in Athens February 16, 2015.
Yannis Behrakis | Reuters

Read MoreCan Greece's rebel leader rescue the nation from default?

The new government of Prime Minister Alexis Tsipras has refused to seek an extension of Greece's bailout program which expires on Feb. 28, rejecting its requirements that austerity policies be imposed.

However, Tsipras has made a distinction between the full bailout program and the issue of Greece's debts. "A loan agreement is different from a bailout," Tsipras told lawmakers from his left-wing Syriza party in Athens earlier in the day.    

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