Greece and her creditors have finally agreed to a comprehensive deal on the terms for a widely-anticipated third bailout package, although there are apparently one or two minor terms that are still to be agreed.
The deal paves the way for Greece to receive a further injection of funds totaling some $94 billion (€86 billion). This will enable Greece to meet a large obligation to the European Central Bank which is due on 20th August.
The Athens stock market rose by more than 1% on the news, and the Euro was firm in London trading.
National Parliaments of the involved parties will have to vote on the deal, but it is not expected to have any serious chance of failing to pass.
The deal is said to include a list of 35 reform actions that the Greek government must pass and implement immediately, plus more items that will need to be addressed in Greece towards the end of 2015.
The measures have been summarized by the Greek news agency Ekathemerini as including:
- Increased taxes on shipping
- Review of the social welfare system
- Bolstering the Financial Crimes Squad
- Phasing out early retirement
- Scrapping tax exemptions enjoyed by the islands
- Implementation of the OECD’s product market reforms
- Energy market deregulation
- Pressing ahead with privatizations
These measures, needless to say, are almost all clearly contrary to the manifesto of the governing Syriza party, and promises made by the Greek Prime Minister, Alexis Tsipras. However this is unlikely to prove troublesome as the Syriza-led government has already tracked back very visibly when it made its initial climb down from the precipice overlook the “Grexit” abyss.