As Greece is just a few hours away from defaulting on its loan to the EC, IMF and the ECB, last minute talks show the country’s Prime Minister asking for the third final bailout package from its lenders from the Eurozone.
The European Commission proposed a new Greek two-year bailout deal on the Eurozone that would help free up cash to repay the €1.6 billion it owes the creditors.
Greece is due to pay its lenders by 5pm local time. The proposal comes amid the abrupt shutdown of talks between Greece and its creditors. Greek banks will close for one week should the deadline pass.
However, the deal wasn’t anything new. The European Commission said it was the same deal “as the one last Friday.” Greek local news reports indicate the new offer is different because of some changes in the “Ekas”, a top-up given to poor Greek pensioners.
Greek Prime Minister Alexis Tsipras had hinted at his resignation as he leaves Greece’s decision to receive the bailout in exchange for stricter austerity measures or to abandon the deadline through a Sunday referendum. However, he reassured that his Syriza party will back the “yes” vote in the referendum.
“If the Greek people want to proceed with austerity plans in perpetuity, which will leave us unable to lift our head… we will respect it, but we will not be the ones to carry it out,” he said.