A bleak debt forecast for Greece is raising pressure on Europe to grant the country softer loan terms, exacerbating tensions among its creditors as they try to seal a new Greek rescue deal within days. The new forecast, prepared by European Union officials in a document seen by The Wall Street Journal, predicts sharply higher Greek debt than Europe had previously hoped and shows just how far Greece is from escaping its marathon crisis. The assessment, which calls for “debt-mitigating measures,” increases the likelihood that its creditors, led by Germany, will have to allow Athens significantly more time to repay its huge bailout debt, European policy makers say. That conclusion is politically painful for Berlin but now looks mathematically inescapable, these officials say. The worsening outlook stood in contrast to some rare good news from Athens: Government data showed the Greek economy grew in the second quarter, defying expectations […]