Greece debt crisis: 'Last-minute talks after new offer'

June 30, 2015•2 Minutes
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Last-minute talks are taking place in Athens over whether to accept an offer by creditors allowing Greece to repay part of its debt, Greek media say.

Greece is hours away from a deadline to repay a €1.6bn (£1.1bn) loan to the International Monetary Fund (IMF) – one it may miss.

One of Greece’s creditors made a last-minute proposal of reforms on Monday, reports say.

If Athens accepts the deal, it will free up cash to repay the €1.6bn.

Greek media say the government is in talks over the offer, made by European Commission President Jean-Claude Juncker late on Monday.

One of the main points in the new offer is a change in terms to Ekas – a top-up given to poorer Greek pensioners. Athens does not want it scrapped before 2020, but Europe wants it phased out earlier.

The Ekathimerini newspaper initially said Greece’s government “listened with interest to what was being proposed” but rejected the offer.

But Greece’s national broadcaster ERT said on Tuesday morning that discussions about the proposals were taking place “at the highest level” in Athens.

If a deal is not agreed, Greece will almost certainly not be able to repay the IMF, and would be in arrears.

Talks between Greece and its creditors broke down last week, leading to Greek banks having to shut this week.

A referendum is due to take place in Greece on Sunday over whether the country should accept the creditors’ proposals

EU leaders have warned that a rejection of the proposals would mean Greece leaving the eurozone – though Greek prime minister Alexis Tsipras says he does not want this to happen.