There is mounting pressure on the Greek government to reach an agreement with its troika of international creditors over the current review of the country’s adjustment program. European Stability Mechanism Chief Klaus Regling told Cypriot newspaper “Politis” that the deal must be found if Greece wants to be granted a precautionary credit line to cushion the country from the volatile bond market in 2014.

Mr. Regling said that if a decision isn’t reached by December 9, it will have to definitely be reached by the end of the year. “If not, the remaining funds in the Hellenic Financial Stability Fund must be returned and an 1.8-billion-euro tranche from the European Financial Stability Facility (EFSF) will not be disbursed,” he said, adding that Greece would benefit from such an agreement as the market’s reaction would improve, clearing the path for a “stable and viable” recovery.

This fresh ultimatum to Greece comes as bonds yields rose from 5.6% in early September to 8.9% in late October.

The troika has reportedly maintained that Greece will need to extend its bailout at the end of the year and key reforms to pensions and labor laws would need to go in place. This means that the current bailout may have to be extended even though this is a scenario that the Greek government wants to avoid at all cost.