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Greece submits bailout proposal

Published 10/07/2015

Greece's Prime Minister Alexis Tsipras has submitted a lastminute proposal to its creditors (AP)
Greece's Prime Minister Alexis Tsipras has submitted a lastminute proposal to its creditors (AP)

Greek prime minister Alexis Tsipras has submitted detailed proposals for economic reform in the hope of persuading creditors to agree a fresh bailout.

Punishing tax rises and spending cuts are being offered in return for a financial lifeline of 53.5 billion euro (£38 billion) to prop up the country's failing banking system.

Athens has drawn up the plans in an attempt to secure its formal request for a bailout through the European Stability Mechanism (ESM).

Greece's new finance minister Euclid Tsakalotos stressed the urgency of the loan request "given the fragility of our banking system", the lack of liquidity and the country's forthcoming obligations.

Requesting a three-year long ESM programme of support, he highlighted Greece's "commitment to remain a member of the eurozone and to respect the rules and regulations as a member state".

The country needs swift action to avoid bankruptcy and the possibility of crashing out of the euro.

Mr Tsipras has pleaded for a resolution to his country's debt crisis that would offer "light at the end of the tunnel" after more than five years of austerity.

Finance officials from the European institutions and the International Monetary Fund (IMF) are due to assess the proposals today and Greece's parliament will vote on them tonight.

Eurozone finance ministers will discuss the proposals in Brussels tomorrow before Prime Minister David Cameron and fellow leaders hold an emergency summit involving all 28 European Union members on Sunday.

Downing Street said the eurozone had to work with Greece to find a way out of the crisis.

Bank closures in Greece have been extended until Monday and Greeks are limited to withdrawing just 60 euro (£43) per day after the imposition of capital controls.

British tourists have been warned to take sufficient cash to cover expected costs and emergencies and to ensure they have supplies of their usual prescription medicines in case of shortages.

Ukip leader Nigel Farage said Mr Tsipras had "caved in to the EU" less than a week after the Greek people rejected - on the Syriza government's recommendation - a milder reform package in a referendum.

"If I was one of the 61% who voted No I would now be very angry," he said.

Labour MP Chris Bryant wrote on Twitter: " Greece voted both to stay in the euro and against the deal that would allow them to stay. Something had to give. Trouble with referendums!".

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