New Greek Proposal Submitted To Creditors

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The Eurogroup press office has announced it has received a proposal from Greece on the eve of the Thursday deadline.

The creditors will assess if there is a basis for a new loan before commenting on the new proposal. The negotiations are supposed to rescue Greece from bankruptcy and a possible Eurozone exit.

RT reports:

“New Greek proposals received by Eurogroup President Dijsselbloem,” the spokesman of Jeroen Dijsselbloem, who chairs the Eurogroup of eurozone finance ministers, tweeted.

Dijsselbloem would offer no comment on the content of the proposals until the institutions responsible for the review complete their assessment of whether there is a basis for negotiating a loan, Michel Reijns also said.

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The proposals were made on the eve of the Thursday midnight deadline.

On Wednesday Greece asked its creditors for a three-year loan facility from the European Stability Mechanism (ESM), promising to present a detailed plan on quick economic reforms no later than on Thursday.

Among the prompt reforms Athens named a set of measures including a tax reform and pension cuts which it is ready to implement starting from next week.

“We will also include additional actions that the Republic will undertake to further strengthen and modernize its economy,” the finance minister said in a statement.

New Greek proposals received by #Eurogroup president @J_Dijsselbloem, important for institutions to consider these in their assessment

— Michel Reijns (@MichelReijns) July 9, 2015

Locked in talks with Athens, EU officials have urged PM Alexis Tsipras and his cabinet to find a solution which would prevent Greece’s exit from the eurozone.

“Inability to find agreement may lead to bankruptcy of Greece and insolvency of the banking system. Everyone will lose,” European Council President Donald Tusk said on Wednesday.

Realistic proposal from Athens needs to be matched by realistic proposal from creditors on debt sustainability to create win-win situation — Donald Tusk (@eucopresident) July 9, 2015

After failing to repay €1.6 billion ($1.76 billion) to the IMF by the July 1 deadline, Greece became the first developed country to default on its international obligations.