Greece’s plan for deal to unlock more rescue loans

Prime minister Alexis Tspiras says he has made concessions. Picture: Getty
Prime minister Alexis Tspiras says he has made concessions. Picture: Getty
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Greece has submitted a proposal for an agreement with its creditors as Athens seeks a deal that will unlock desperately needed rescue money.

Prime minister Alexis Tspiras said the ball was now in Europe’s court to prevent the potential breakup of the European Union.

Without more rescue loans, Greece could default on its debts this month and potentially drop out of Europe’s currency bloc.

Mr Tspiras said: “It is now clear that the decision for whether they want to adapt to realism and emerge from the crisis without the division of Europe, the decision belongs to the political leadership of Europe.”

He gave no indication of what the proposal might include, other than to say it was realistic. It was submitted to the European Central Bank (ECB), International Monetary Fund (IMF)and European Commission (EC) on Monday night.

His comments come after the leaders of Germany, France, the IMF, ECB and EC held an emergency meeting about Greece in Berlin.

According to a German government statement, all present at that meeting pledged to work “with great intensity” to seek a solution.

Greece must repay a total of about €1.6 billion (£1.2 bn) to the IMF this month, with the first instalment due on Friday.

It is uncertain whether the country can afford to pay the roughly €303m due, increasing the sense of urgency for an agreement to be reached by then that will unlock the remaining €7.2bn billion of its bailout.

There have been suggestions Greece could seek to bundle all the money it owes the IMF this month into one payment on 30 June, an option permitted under IMF rules but rarely used.

Taking that route could buy more time to secure a deal, although Athens has not indicated it is considering it.

“I am optimistic,” Mr Tsipras said.

“I believe the political leadership of Europe will view our proposals with respect.”

Mr Tsipras said Greece’s latest proposals include some compromise.

“We have made concessions because a compromise requires concessions,” he said. “We know these concessions will be difficult but we have submitted a realistic proposal for Greece’s exit from the crisis.

“A realistic plan whose acceptance by the institutions, the creditors and our partners in Europe would mark the end of the scenarios of the division of Europe.”

Europe’s economics and financial affairs commissioner Pierre Moscovici said talks were “fruitful” though there was more work to be done.

An EU spokesman said Greece and its creditors still need to do more work to reach a deal.