Schaeuble said Greece knows it must implement the measures linked to the first bailout that have not yet been carried out before receiving any further assistance.
"We have to insist on this, because of course we must help Greece as it is in a particularly difficult situation," he said.
Asked whether German taxpayers might have to pay yet more money to keep Greece afloat, Schaeuble answered: "No! Greece must live up to its commitments. We can only help when it is not a bottomless pit."
Both the PSI deal and the new bailout agreement will be put before the heads of the political parties who form the country's uneasy coalition government — the majority Socialist party, rival conservatives and the small right-wing LAOS party.
LAOS leader George Karatzaferis sent a letter Wednesday to the top European Union officials, calling on the European parliament to take a position on Greece's debt agreements and describing the current debt inspection arrangements an "economic dictatorship."
In the letter, Karatzaferis wrote: "Reform cannot happen at gunpoint, especially when it requires the participation of the complex structure of an entire society."
Derek Gatopoulos in Athens and Juergen Baetz in Berlin contributed.
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