Greece: Greece’s Prime Minister Alexis Tsipras has offered new concessions to the country’s creditors, media reports say.
A letter to creditors obtained by the Financial Times says Mr Tsipras is prepared to accept most conditions that were on the table before talks collapsed and he called a referendum.
On Tuesday, eurozone finance ministers refused to extend the previous bailout.
Greece became the first European Union country to fail to repay a loan to the International Monetary Fund.
The Financial Times says that Mr Tsipras was prepared to accept a deal made by creditors over the weekend, if a few changes were agreed.
The FT says a letter sent by Mr Tsipras to creditors asked for only two changes: that a VAT discount to Greek islands is maintained, and that the process of raising the retirement age to 67 begins in October and not immediately.
Greece’s national broadcaster ERT says Mr Tspiras would accept a deal with only minor requests for changes.
European markets surged on the news Greece might be willing to accept a deal.
The BBC’s economics editor Robert Peston said Mr Tsipras “seems to have caved in”.
Lenders’ proposals – key sticking points
VAT (sales tax): A new system to come in from 1 July, with three rates, aimed at boosting annual revenue by 1% of total output (GDP)
Most goods to be taxed at top rate of 23%, including restaurants and catering and processed foods
Reduced rate of 13% for basic food, electricity, hotels and water
Super-reduced rate of 6% for medicines, books and theatre
End exemptions and eliminate VAT discounts for Greek islands
Create strong disincentives to early retirement
Move retirement age up to 67 by 2022
End Ekas “solidarity” top-up grant that some 200,000 poorer pensioners get – immediate Ekas cut for wealthiest 20% of recipients, and cut completely by 2020
Pensioners’ healthcare contributions to rise to 6%, from 4%
Two key meetings are to take place to discuss aid for Greece, hours after Athens missed the deadline for a €1.5bn (£1.1bn, $1.7bn) payment to the IMF.
In one, officials with the European Central Bank (ECB) will decide whether to grant an emergency loan to Greece.
In the second, eurozone finance ministers will discuss Greece’s latest proposal for a third bailout. It would last two years and amount to €29.1bn.
Ministers will discuss the proposal in a conference call at 15:30 GMT.
With the eurozone bailout expired, Greece no longer has access to billions of euros in funds.
Only three other countries are still in arrears to the IMF – Sudan, Somalia and Zimbabwe. Between them, they owe €1.6bn, only marginally more than Greece.
The ECB has also frozen its liquidity lifeline to Greek banks, that did not open this week.
Withdrawals from cash machines are capped at just €60 a day and long queues have been forming outside banks.
However, up to 1,000 branches re-opened on Wednesday to allow pensioners – many of whom do not use bank cards – a one-off weekly withdrawal of up to €120.
The Associated Press news agency said many pensioners had waited outside banks from before dawn, only to be told to return on Thursday or Friday.
Some pensioners were told their pensions had not yet been deposited, AP said.
“It’s very bad,” said Popi Stavrakaki, 68. “I’m afraid it will be worse soon. I have no idea why this is happening.”
The European Commission – one of the “troika” of creditors along with the IMF and the ECB – wants Athens to raise taxes and cut welfare spending to meet its debt obligations.
Greece’s left-wing Syriza government, elected on an anti-austerity platform, has been in deadlock with its creditors for months over the terms of a third bailout.
German Chancellor Angela Merkel said she had ruled out further negotiations until after Sunday’s referendum, which will ask Greeks if they want to accept theircreditors’ proposals.
The Greek government took the unilateral decision to hold a vote last weekend, angering eurozone ministers.
EU leaders have warned that a ‘No’ vote would see Greece leave the eurozone – though Mr Tsipras says he does not want this to happen.
A poll by the Greek newspaper Efimerida ton Syntakton published on Wednesday suggested that 54% of Greeks would vote against the creditors’ terms for a bailout – fewer than in their last poll.
What happens next?
1 July – Eurogroup – the finance ministers of the eurozone – holds a telephone conference to discuss new proposal from Greek Prime Minister Alexis Tsipras.
5 July – Referendum on creditors’ proposals takes place, which many say is effectively a vote on Greek membership of the eurozone.
20 July – Greece must redeem €3.46bn of bonds held by the European Central Bank. If it fails to do so, the ECB can cut off Greece’s access to emergency loans.
