Greece Closes In On Third Bailout Deal Worth 86 Billion Euros

“We’re talking about a program for three years, it needs to be negotiated thoroughly”, Deputy Finance Minister Jens Spahn told Germany’s ARD television shortly before Greece and its worldwide lenders said they had concluded a new bailout package.

The Greek finance minister, Euclid Tsakalotos, confirmed that “two or three small issues” remain pending.

The markets may not reflect it but Greece has managed to secure its third bailout, but there are a few details that need to be finalised.

Greece and its creditors were last night trying to finalise a new multi-billlion euro bailout deal needed to meet a crucial repayment to the European Central Bank this month.

However, German officials cautioned that the deal must not just be a temporary stopgap and urged Greece to consider its “business model” in order to make the deal sustainable over the next three years.

Greece has reportedly agreed the function of a new independent privatisation fund, and how non-performing bank loans will be administered, the official said.

Government aide Theodoros Mihopoulos earlier said on Twitter that the negotiation had been completed and that “some details remain”.

Critics of the cutbacks say the measures have gone too far and stifled Greece’s already ailing economy. This would pave the way for aid disbursements by August. 20, when a 3.2 billion euro debt payment is due to the European Central Bank.

The newspaper Kathimerini published on Tuesday morning what it said was a list of requirements from Greece’s creditors, including a tax increase for shipping companies and the abolition of tax privileges for farmers. Angela Merkel, the German chancellor, has warned that “thoroughness comes before speed”.

“Today the deal will be submitted to parliament”, Christos Staikos, a member of the ruling Syriza party, told the station. Greece’s Parliament could even approve it by Friday.

The Greek government agreed with its creditors on the primary budget targets for 2015-2018, according to government sources cited by the Athens News Agency on Tuesday.

It said it had agreed to have a 0.25% government deficit this year and a 0.5% surplus next year, when not counting the cost of servicing debt.

The agreement also involved the government having to immediately implement 35 measures. Those so-called primary surpluses would rise to 1.75% in 2017 and 3.5% in 2018. In exchange, the government has instituted austerity measures and sweeping economic reforms demanded by creditors.

However, the government spokeswoman insisted Monday that “there are no electoral thoughts”.

Earlier, Reuters reported that the two groups had reached a deal on the indebted country’s fiscal targets, which would see Greece aiming for a surplus from 2016.