Greece submits aid request; still to send full plan
Jane Onyanga-Omara and
Paul
Davidson, USA TODAY
11:46 a.m. EDT July 8, 2015
Euro zone members have given Greece until the end of the week to come up with a proposal for sweeping reforms in return for loans that will keep the country from crashing out of Europe's currency bloc and into economic ruin. USA TODAY ![]() Greece submitted a request to the European Union for aid on Wednesday, and must present detailed new economic reform proposals to justify fresh lending by international creditors by Thursday. Greece submitted the request for a three-year loan from the USA TODAY EU to Greece: Make deal by Sunday or face bankruptcy The letter sent by new
Greek Finance Minister Euclid Tsakalotos to the head of the ESM,
published by Reuters, said the country proposes to implement
measures including tax reform-related measures, and
pension-related measures as early as the beginning of next week. "Greece is committed
to honor its financial obligations to all of its creditors in a
full and timely manner," the letter said. "We trust Member
States appreciate the urgency of our Loan request at this time
given the fragility of our banking system, our shortage of
available liquidity, our upcoming obligations, our buildup of
internal arrears, and our expressed desire to clear our
outstanding arrears with the IMF and the Greek Prime Minister Addressing Tsipras, On Tuesday, European leaders told Greece to reach a new bailout agreement with its creditors by Sunday or face bankruptcy and expulsion from the euro currency system. Greece's Ministry of Economy, Infrastructures, Maritime Affairs and Tourism on Wednesday reassured Greeks and tourists "that there are adequate food supplies in the market and that their prices remain stable," the BBC reported. Investors in Asia reacted earlier to both a sell-off in mainland Chinese shares, and Greece's uncertain financial future. Japan's Nikkei 225 index lost 3.1% to close at 19,737.64, China's government on Wednesday told state-owned companies to buy shares, raised the amount of equities insurance companies can hold and promised more credit to finance trading in an effort to halt the country's stock market slide, the AP reported. The Shanghai Composite has fallen by more than 30% since early June U.S. stocks dropped sharply at the open, with the Dow dropping about 130 points on the global turmoil. Leaders of the 19 country eurozone — who use the euro currency — gave Greece until Thursday to submit new economic reform proposals after the country failed to provide a detailed written proposal at an emergency meeting Tuesday. European shares rose on the news of Greece's letter.
Germany's DAX rose 0.8%, France's The euro rose 0.1% to $1.1. Leaders from all 28 "The stark reality is that we have only four days left to
find ultimate agreement," European Council President On Sunday, Greek voters rejected a previous bailout proposal
by creditors the Banks in Greece have been closed for over a week, with strict limits on daily ATM withdrawals. They will stay shut on Wednesday amid fears the banking system may soon run out of cash. The country failed to make a $1.8 billion debt payment by June 30 and is due to make another $3.9 billion payment by July 20. http://www.usatoday.com/story/money/2015/07/08/greece-deadline-looms/29850789/?siteID=je6NUbpObpQ-.ezn1y9cMLuybZiJEC6D8Q |