File Photo: Greeks and their supporters gather holding banners in support of their countrymen in Sydney on July 4, 2015, a day before nearly 10 million Greek voters take to the ballot booths to vote 'Yes' or 'No'. (AFP Photo)
Brussels:
Euro zone leaders set conditions today for Greece to negotiate a third bailout to keep the near-bankrupt country in the euro zone.
Following is a summary of the leaders' statement.
* Greece will request continued IMF support from March 2016.
* Greece to pass by July 15 measures including simplifying VAT rates and applying tax more widely, cutting back on pensions and making the national statistics agency independent.
* Greece to pass by July 22 measures overhauling its civil justice system and implementing EU bank bail-in rules.
* Greece to set clear timetable for following measures:
- Ambitious pension reform;
- Product market reform including on Sunday trading, pharmacy ownership, milk and bakeries;
- Privatise electricity transmission network;
- Review collective bargaining, industrial action and collective dismissals;
- Strengthen financial sector, including action on non-performing loans and eliminate political interference.
* Greeks shall also take the following actions:
- Privatisation, involving transfer of assets to independent fund in Greece designed to raise 50 billion euros, three-quarters of which would be used to recapitalise banks and to decrease debt;
- Cut costs of public administration and reduce political influence over it. First proposal to be provided by July 20.
- Ensure creditor approval for key legislation before submitting to public consultation or parliament.
The above-listed commitments are minimum requirements to start the negotiations with the Greek authorities.
* Financing needs are 82-86 billion euros. Decision on new package urgently required given financing needs of 7 billion euros by July 20 and further 5 billion euros by mid-August.
* A possible new ESM programme would have to include a 10-25 billion euro buffer for banks.
* Possible debt reprofiling but no nominal haircuts.
Following is a summary of the leaders' statement.
* Greece will request continued IMF support from March 2016.
* Greece to pass by July 15 measures including simplifying VAT rates and applying tax more widely, cutting back on pensions and making the national statistics agency independent.
* Greece to pass by July 22 measures overhauling its civil justice system and implementing EU bank bail-in rules.
* Greece to set clear timetable for following measures:
- Ambitious pension reform;
- Product market reform including on Sunday trading, pharmacy ownership, milk and bakeries;
- Privatise electricity transmission network;
- Review collective bargaining, industrial action and collective dismissals;
- Strengthen financial sector, including action on non-performing loans and eliminate political interference.
* Greeks shall also take the following actions:
- Privatisation, involving transfer of assets to independent fund in Greece designed to raise 50 billion euros, three-quarters of which would be used to recapitalise banks and to decrease debt;
- Cut costs of public administration and reduce political influence over it. First proposal to be provided by July 20.
- Ensure creditor approval for key legislation before submitting to public consultation or parliament.
The above-listed commitments are minimum requirements to start the negotiations with the Greek authorities.
* Financing needs are 82-86 billion euros. Decision on new package urgently required given financing needs of 7 billion euros by July 20 and further 5 billion euros by mid-August.
* A possible new ESM programme would have to include a 10-25 billion euro buffer for banks.
* Possible debt reprofiling but no nominal haircuts.
© Thomson Reuters 2015
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