Monday 13th July 2015 saw the Greek Prime Minister, the IMF and Eurozone leaders come to an agreement for the third bailout just in the nick of the time. However, this is not the end of this Greek tragedy.
Alexis Tsipras still needs to convince his parliament to accept the new conditions which is widely viewed as more severe than those which the Greek citizens voted against in the referendum. The markets responded positively to the news that a bailout agreement was closer than ever.
Some of the key conditions to the bailout is as follows:
Greek government assets transfer - a new fund of Greek assets such as airports and banks will be created to help subsidise the recapitalisation of the Greek banks, the fund will remain in Athens.
Pensions - Greece's creditors wants the Greek government to reform pensions, proposing a later retirement age of 67 years amongst other conditions.
VAT - many items will be subjected to 23% VAT if the bailout is accepted.
Whether the Greek parliament would accept these conditions is another story, Alexis Tsipras may even feel backlash from his own Syriza party and his approval rating amongst the Greeks may fall if they haven't already.
Labels: Alexis Tsipras, Bank of Greece, Greece, Grexident, Grexit, IMF, Varoufakis
