Greece presents new reform plan to creditors

Greece has presented a new proposal to its international creditors to avert an exit from the eurozone, a spokesman for the president of the Eurogroup of eurozone finance ministers says.

Michel Reijns, the spokesman for Eurogroup President Jeroen Dijsselbloem, said in a tweet on Thursday that the eurozone has received the new bailout reform plan from Greece less than two hours ahead of a midnight deadline that has been set for such a proposal. The deadline had earlier been set on July 2 by European Council President Donald Tusk.

"New Greek proposals received by #Eurogroup president @J_Dijsselbloem. Important for institutions to consider these in their assessment," the spokesman said.

The details of the proposal were not immediately available, however, according to the latest reprots, Greece has offered to overhaul pensions and raise taxes in its new bailout proposal.

"The Greek proposal ... includes funding of the country's financing needs ... for three years, debt adjustment and a front-loaded investment package of 35 billion euros (USD 38 billion)," AFP quoted an unnamed source as saying.

Greece’s international creditors had demanded pension cuts and tax reforms in return for a new bailout package.

On Wednesday, Greek Prime Minister Alexis Tsipras said his government will submit to its creditors on Thursday a “credible reform” plan, which reportedly focuses on pension and tax reforms.

The proposals will be evaluated by officials from Greece's international creditors, before being scrutinized by the eurozone finance ministers on Saturday.

"The (creditor) institutions will examine them to give their view to the Eurogroup," a European source, speaking on condition of anonymity, told AFP, adding, "They also need these proposals to determine the size of the bailout program that will also depend upon broader economic scenarios.”

Greece has already defaulted on a €1.5-billion debt payment to the International Monetary Fund (IMF), which, together with the European Commission and the European Central Bank, forms the troika of Greece’s international lenders.

Greece has repeatedly asked for a write-off in its 320-billion-euro (USD 350-billion) debt, saying that could pave the way for a permanent deal with the lenders, enabling Greece to carry out the required reforms in its economy.

That call has been endorsed by the IMF, but other major stakeholders in Greece’s debt, including Germany and many other members of the 19-nation eurozone bloc, have refused to grant Athens such a relief.

On July 5, Greeks endorsed a 'No' vote to further austerity measures in a referendum.

Greece received two bailout packages in 2010 and 2012, worth a total of €240 billion ($272 billion) from its creditors following its 2009 economic crisis. In return for the bailouts, Athens committed itself to implementing harsh austerity measures, which triggered public outcry.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk