ATHENS: Greece could be edging closer to a deal with its creditors after submitting fresh proposals which are thought to include concessions on tougher austerity targets.
Alexis Tsipras, the Greece Prime Minister, has reportedly agreed to consider measures previously deemed a “red line” in the debt talks. Namely, raising the rate of VAT. “I think we’re very close to an agreement,” he told Italian newspaper Corriere della Sera.
The new plan is also said to include a variety of financing options which could tide over the embattled economy and give the country until next March to reach a final deal.One major Greek proposal was an idea, first floated by finance minister Yanis Varoufakis, for debt held by the European Central Bank to be transferred to the eurozone’s crisis-fighting fund, the European Stability Mechanism, which is widely seen as softer, sources told AFP.
The move would delay two major payments owed by Greece to the ECB this summer, allowing Athens urgently needed breathing space. The Greece proposals have been received by the European Commission and are said to address creditors’ concerns about Greece’s budget targets and include a proposal to ensure the sustainability of Greek debt, according to Bloomberg.
