Greek Prime Minister Alexis Tsipras and his government administration have finally yielded to the demands of creditors in exchange for a bailout package worth 53.5 billion euros ($59.4 billion). Tsipras finally agreed to the terms in the Greek bailout proposal which includes pension savings, tax increases and spending cuts suggested by creditors but rejected by Greek voters during the July 5 referendum, Bloomberg reported.
Jacob Kirkegaard, a senior fellow at the Peterson Institute in Washington, told Bloomberg that this is the closest that they could ever get in reaching a deal as "Tsipras has in the end given in" in the 11th-hour bid of Greece to stay within the European Union.
The Greek leader has the support of the International Monetary Fund, the United States and EU President Donald Tusk on the long-term debt restructuring in order for Greece to recover from its fiscal and economic crisis, the publication added.
International Monetary Fund head Christine Lagarde, Eurogroup President Jeroen Dijsselbloem, European Commission President Jean-Claude Juncker and European Central Bank President Mario Draghi have held a conference call on the new proposals, according to BBC
Dijsselbloem noted that the new Greek proposal was "a thorough piece of text" although the support from the Greek Parliament would give it "more credibility." The Greek Parliament would need to discuss and approve it later today.
