The Greek government made a formal request to the European Stability Mechanism asking for a bailout program to help pay its debts and bring its crisis-stricken economy back from the road to bankruptcy.
The European Stability Mechanism, Europe’s financial rescue fund, confirmed on Wednesday that Greece applied for a new bailout package. This would be the country’s third bailout package after two massive bailouts that amount to approximately 240 billion euros.
Reportedly, the program will have a three-year duration and the amount requested is approximately 50 billion euros. It includes growth and debt restructuring clauses and the commitment of the Greek government for immediate implementation of tax and pension reforms.
Details on the Greek request and proposal to the ESM will be released later in the week.
Meanwhile, the European Commission is expecting Greece to present its proposal for a bailout agreement. The European Union summit of the 28 member states is expected to decide on Sunday whether to move ahead with a fresh bailout program or let Greece slide out of the common currency bloc, and possibly out of the union.
See below the Greek letter to the ESM: