Greek debt crisis: Greece reaches a deal on a third bailout with creditors

 
James Nickerson
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The deal comes just in time for Greece to meet its deadline to pay the ECB €3.5bn (Source: Getty)

Greece has reached a multi-billion euro agreement over a third bailout with its lenders, following another overnight set of talks which started on Monday afternoon.

The two sides are reported to have agreed on a wealth fund to handle privatisations, as well as how to address non-performing loans in its bankings sector - two key sticking points in negotiations.

The sides are also thought to have agreed on final fiscal targets, which will aim for Greece to run a primary budget surplus from 2016, excluding interest payments. In 2015, forecasts are for Greece to run a budget deficit of 0.25 per cent of gross domestic product. Both sides also agreed to deregulate Greece's natural gas market.

“An agreement has been reached. Some minor details are being discussed right now,” a finance ministry official told Reuters. “Finally, we have white smoke."

Euclid Tsakalotos, the Greek finance minister, reportedly said "two or three small details" are still pending in the negotiations.

Read more: Greek bank stocks rise as bailout talks progress

This, the most recent set of talks between Syriza government and its creditors, will help the country remain in the Eurozone rather than suffer a Grexit, and avoid bankruptcy.

Greek Prime Minister Alexis Tsipras said last week the country was in the final stretch of concluding a deal, which has arrived in time for the country to pay off its €3.5bn debt to the European Central Bank by 20 August, the day the debt matures.

The package will have to be agreed by Eurozone finance ministers on Friday, but creditors appear happy with concessions made by Tsipras.

More to follow…

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