Greece seeks €53.5 billion in new bailout proposal
Greece meets deadline.
Jason Walls provides an update on the latest news from Greece on NBR Radio, and on demand on MyNBR Radio.
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The Greek government has met it creditors ‘final’ deadline, with an 11th-hour bailout proposal submitted just hours ago.
A spokesman for eurozone president Jeroen Dijsselbloem tweeted the proposal has been received.
Greek prime minister Alexis Tsipras tabled the reform plans, which include tax hikes (including extra taxes on restaurants and shipping companies), a timetable for privatisation and pension reforms in a bid to appease creditors' demands.
In return, Mr Tsipras has requested a new €53.5 billion bailout package which would cover his country’s loan obligations until the end of June 2018.
Mr Tsipras spent the day with his cabinet drafting the bailout package reform proposal.
Whether or not the new proposal is accepted will be determined on Sunday at an emergency summit of eurozone leaders.
This follows European Council president Donald Tusk’s indication the council would make an effort to address Greece's key request for debt relief, earlier in the day.
"The realistic proposal from Greece will have to be matched by an equally realistic proposal on debt sustainability from the creditors. Only then will we have a win-win situation," Mr Tusk says.
The new proposal will be voted on by Greece’s parliament on Friday (Saturday NZ time.)
Earlier this week, Mr Tusk said this was now the "most critical moment in the history of the eurozone."
The new reforms have raised hope Greece will be able to stay in the eurozone, after the Greek people overwhelmingly voted ‘no’ to bailout conditions last Sunday, and the country defaulted on its €1.6 billion IMF debt repayment the week prior.
Without a fresh injection of emergency funds, the embattled nation is poised to default on its €4.2 billion payment to the European Central Bank on July 20.
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Jason Walls
Fri, 10 Jul 2015
Fri, 10 Jul 2015
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Greece seeks €53.5 billion in new bailout proposal
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