Greek Prime Minister Alexis Tsipras has told creditors his government is prepared to accept most conditions imposed for a bailout, hours after Greece defaulted on a loan payment to the International Monetary Fund.
"I am writing to inform you on the position of the Hellenic Republic towards the list of Prior Actions of the Staff Level Agreement as published on the European Commission website on June 28th 2015," Tsipeas wrote in a letter today to the heads of the European Commission, European Central Bank and the IMF. "The Hellenic Republic is prepared to accept this Staff Level Agreement subject to the following amendments, additions or clarifications."
The exceptions Tsipras is seeking center on VAT reform; taxes on businesses, subsidies for farmers, military spending; pensions; and labor and product markets. But news reports suggest the letter contains elements Eurozone ministers will find hard to accept.
The letter comes a day after Greece asked for a new bailout from the eurozone, the countries that use the euro currency, seeking a new two-year deal "for the full coverage of financial needs and at the same time restructuring of debt."
Today's developments follow a confirmation from the IMF that Greece officially missed a loan payment of about $1.8 billion, and is in arrears – a move that could see it leave the eurozone. And it comes just days after talks between Greece and its creditors broke down over their proposals for Athens to receive an additional $8.17 billion, the latest tranche in several infusions that will go to repay the country's outstanding loans. Greece's creditors – the EC, the ECB and the IMF — want the country to raise taxes and cut spending on welfare.
Tsipras said he was putting the terms of a bailout to a July 5 vote, and urged Greeks to vote "no," saying Greece wouldn't be allowed to leave the Eurozone because "the cost would be too high." European leaders have said a "no" vote to be tantamount to Greeks choosing to leave the eurozone.
The failed negotiations were followed by the ECB halting an emergency credit line to Greek banks. Banks and ATMs in the country remained closed Wednesday for a third day after the government announced capital controls in response to the ECB's move.
The $1.8 billion Greece owes the IMF is just a tiny fraction of what the country owes. The Council on Foreign Relations estimates that Greece owes the IMF, one of its many creditors, $26 billion. And this Wall Street Journal interactive explains what Greece owes its creditors and when.
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