REUTERS
The new package of reforms, which the Greek government has submitted to creditors on Thursday night, meets most of their demands voiced on June 26.
In an 11th-hour bid to stay in the eurozone, the government of Greek Prime Minister Alexis Tsipras offered to meet most of the demands made by creditors in exchange for a bailout of EUR 53.5 billion ($59.4 billion), according to Bloomberg.
The package of spending cuts, pension savings and tax increases almost mirrored that from creditors on June 26, which was rejected by Greek voters in a July 5 referendum. It will face its first hurdle in the Greek Parliament on Friday.
Though Tsipras ceded ground, he insists long-term debt needs to be made more manageable to allow Greece to recover from a crisis that has erased a quarter of its economy. He has a growing support base that includes the U.S., European Union President Donald Tusk and the International Monetary Fund.
Risks would remain if an agreement is reached, ABN Amro Bank NV economist Nick Kounis wrote in a note.
“The deal would still need to be passed through various national parliaments,” Kounis wrote. “Even if it is passed, there is a risk that Greece finds it difficult to stick to the program in coming months. The economy looks set for a sharp contraction, which is not the ideal background to be implementing tough measures.”