Greece, eurozone appear to inch toward 11th-hour debt deal
A deal to resolve Greece's debt crisis and avoid economic disaster could be reached within days after the country submitted proposals to its international creditors welcomed by European leaders at an emergency summit.
The proposals, the specific details of which have not been released, are a lifeline that come after months of unproductive negotiations between Athens and its trio of creditors — the International Monetary Fund, European Central Bank and European Commission (eurozone governments).
Although an agreement has not yet been formally struck, eurozone leaders said at the summit in Brussels late Monday that the fresh submissions from Greek Prime Minister Alexis Tsipris were a step in the right direction that could ultimately lead to a deal by Wednesday evening that can be presented on Thursday.
"Prime Minister Tsipras has assured us of Greece's seriousness and willingness to work constructively. As the last hours have shown, we can see all parties fully committed to finding a solution," European Council President Donald Tusk said.
Greece has until June 30 to unlock the last $8 billion of a $270 billion bailout package or face default on a $1.8 billion loan repayment due to the IMF on that date.
Analysts expect Athens to have made concessions on tax increases and changes to Greece's pensions system, including the age at which Greeks can retire. It is also likely that Greece will have agreed to implement the reforms at a quicker pace, a sticking point in the negotiations that have dragged on for five months.
If the repayment is not made to the IMF at the end of the month, there are fears that Greece's defaulting on that loan could ultimately force it out of the 19-nation euro-currency bloc. And under a worse-case scenario, that eurozone exit could jeopardize Greece's membership of the European Union, a 28-nation political unit.
Global markets were buoyed for the second day in a row on Tuesday on growing hopes that a deal is close to being achieved.
Eurozone finance ministers will convene on Wednesday to discuss the new proposals in detail ahead of a full meeting of European Union leaders in Brussels on Thursday.
MORE COVERAGE OF THE GREEK DEBT CRISIS