Greece agrees to 3rd Bailout Deal with its International Creditors

Athens, Aug 11: Greece on Tuesday agreed to a third bailout deal with its international creditors — the European Commission, European Central Bank, European Stability Mechanism and the International Monetary Fund, a media report said.

Both sides reportedly agreed on the primary deficit of 2015 and surpluses of 2016 and 2017, while ruling out introducing any new measures in relation to achieving fiscal targets for 2015-2016, state-run To Vima daily reported.

The deal was concluded shortly after 8 a.m., following an 18-hour marathon session of negotiations between creditors and Greek government representatives including Finance Minister Euclid Tsakalotos and Economy Minister Giorgos Stathakis, that began on Monday morning.

According to a government source, mutual compromises were made on the issues that had remained unresolved, namely the new privatisation fund, energy deregulation and non-performing loans.

The agreement also involved the government having to immediately implement 35 measures.

The measures demand changes in tonnage tax for shipping firms, reducing the prices of generic drugs, a review of the social welfare system, strengthening of the Financial Crimes Squad (SDOE), phasing out of early retirement, scrapping tax breaks for islands by the end of 2016, implementation of the product market reforms proposed by the Organisation for Economic Cooperation and Development (OECD) and de-regulating the energy market.

Also agreed was raising the value added tax (VAT) on private tutoring to 23 percent in order to offset a reduction in VAT on beef from 23 to 13 percent.

According to Greek daily Kathimerini, if the agreement is finalised, the Greek parliament would vote on it on Thursday.

This would be followed on Friday by the Eurogroup and other eurozone parliaments approving the deal. (IANS)