Greece has finally reached a bailout deal with its lenders after 23 hours of talks, which will see a further €85bn package handed to the struggling country.
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“Despite the obstacles that some are trying to put into our path, I’m optimistic we will get to an agreement, loan support from the European mechanism, which will put a final end to economic uncertainty”, Tsipras said during a visit to the Greek infrastructure ministry in Athens.
Greece has been anxious to conclude a deal with its creditors for the three-year, roughly 85 billion euro ($93 billion) in time to receive funds ahead of an August 20 debt repayment due to the European Central Bank from its first bailout.
Approving the agreement would close a painful chapter of aid talks for Greece, which fought against austerity terms demanded by creditors for much of the year before relenting under the threat of being bounced out of the eurozone.
Finland’s Finance Minister Alexander Stubb – one of the hardliners on the bailout accord – told AFP that Helsinki would carefully scrutinise all the details.
Banks will be strengthened with new cash infusions by the end of the year and will have an immediate boost of “at least 10 billion euros ($11 billion)”, it said.
Eurozone finance ministers are likely to meet at the weekend to give the deal official endorsement at the top political level.
“We’ve had an agreement in principle”, she said, although she remained tight-lipped about the details still to be ironed-out. The EC said there was a technical agreement but was cautious in the absence of political approval which will happen at the Eurogroup meeting.
Adapted from an earlier baseline scenario, the targets foresee a primary budget deficit of 0.25 percent of gross domestic product in 2015, a 0.5 percent surplus from 2016, 1.75 percent in 2017, and 3.5 percent in 2018, the official said.
But a Greek government source said Tsipras had requested an emergency session of parliament for Thursday – with all lawmakers required to attend – for the crucial vote on ratifying the deal.
Former Energy Minister Panagiotis Lafazanis, who is opposed to the new bailout agreement, has dismissed it as “a negotiating fiasco” and said Tsipras could not “avoid the outcry by resorting guiltily and hurriedly to elections”.
Angela Merkel’s spokesman said the deal was a “substantial result” containing “sensible and important” measures, following a near-catastrophic breakdown in relations with the Greeks last month.
“It’s very unusual for talks between Greece and its creditors to go so smoothly, which may straight away raise skepticism among some investors”.
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These include a cost-cutting review of the social welfare system, privatization of some key state assets and gradually increasing the age of retirement to 67 by 2022.
