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GREECE PROPOSES NEW TWO YEAR BAILOUT

The Greek government has proposed a new Two-Year bailout programme, according to news breaking in Athens.

This two-year programme would be supplied under the European Stability Mechanism and – crucially – would run alongside a debt restructuring. And it wouldn’t include the International Monetary Fund.

In a statement from Alexis Tsipras’s office, cited by Reuters, Greece says it is still at the negotiating table, and seeking “a viable solution, under the end, aimed at staying in the euro.”


This could be a very significant development, depending on how creditors react. No word yet on how large this programme would be, though, let alone what conditions Greece is prepared to accept.

One important point -- this would not be an extension of the current bailout (which was made under the EFSF) but a whole new programmme. That means a discussion of debt relief would be an option. (Guardian)