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Greek Government Submits Two Year Proposal to European Stability Mechanism

With the current bailout package expiring at midnight Central European Time, the office of the Prime Minister of Greece announced on Tuesday afternoon that the Greek government has submitted a proposal to the European Stability Mechanism for a two-year deal.
“The Greek government today proposed a two-year deal with the European Stability Mechanism for the full coverage of its financial needs and simultaneous debt restructuring,” the announcement from the office of Prime Minister says.  “The Greek government will seek a liveable solution within the Euro until the end. This will also be the message of No to a bad deal, during Sunday’s referendum.”
The letter sent to the ESM by Tsipras does not state the amount of the requested loan but notes that the loan will be used solely for the purpose of paying maturing debts between 2015 and 2017, which are outlined in the same document and are valued at around 29.145 billion euros. The letter also asks that Greece’s European Financial Stability Facility debt be restructured to make the country’s debt sustainable. Finally Tsipras requests that the existing bailout package be extended for a short period of time. The exact duration of this period is not specified,
The Greek government’s request to the ESM can be read here.
In response to Greece’s request, Jeroen Dijsselbloem announced that Eurogroup will hold a conference call 7 p.m. on Brussels.
Meanwhile following Greece’s request, German Chancellor Angela Merkel said at a meeting of her coalition group that Germany will not interfere with any new proposals before Sunday’s referendum takes place, according to sources present at this meeting.
Earlier today Greek Finance Minister Yanis Varoufakis had said Greece would not make the 1.6-billion-euro payment to International Monetary Fund, due at 6 p.m. Eastern Time.

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