The Greek PM Alexis Tsipras
has made a dramatic bid for a financial lifeline.
http://www.newstatesman.com/politics/2015/06/last-minute-greece-requests-third-bailout
Greece has requested a third
bailout just before a key repayment deadline on its existing debt. Just before
its deadline to repay €1.6bn to the International Monetary Fund, the Greek
prime minister Alexis Tsipras reportedly made the request to the eurozone’s
€500bn rescue fund, the European Stability Mechanism (ESM).
In a statement from Tsipras’
office, the PM said his government was seeking “a viable solution, under the
end, aimed at staying in the euro”. This would not be an extension of the
country’s current bailout, which expires at midnight, but a new programme, and
would likely include some measure of debt restructuring.
Greek public debt currently
stands at €323bn, and fears that it will default and have to exit the eurozone
persist. Banks are closed in the country at the moment, with cash withdrawals
capped at €60 a day. A referendum is due to take place on Sunday, where the
Greek people will vote on whether to accept the proposals
from their country’s creditors.
The European Commission has
stated that if funds were to be released via the ESM, Tsipras and his
government would have to back a “yes” vote in the referendum. The PM has
previously hinted that he would resign if the result is a “yes”.
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