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Greece to Offer New Bailout Proposal to Lenders

Greece was no closer Monday to reaching a new bailout deal with its international creditors, but Prime Minister Alexis Tsipras is set to offer new proposals at a European Union summit on Tuesday.

Pressure mounted throughout the day on Athens. One one of its lenders, the European Central Bank, decided not to change the level of its emergency credit to Greek banks even as they struggle to replenish cash machines.

Greek government controls on withdrawals have been extended through Wednesday, with some analysts saying that without a new bailout agreement, the banks could run out of money within days.

Tsipras spoke Monday by phone with German Chancellor Angela Merkel, Europe’s chief advocate for imposing tough austerity measures on the Athens government.

Their conversation took place in the aftermath of a resounding Greek vote Sunday against the lenders’ demand for new financial restrictions in Greece in exchange for more bailout money to keep its banks from running out of money.

Later, the German leader met with French President Francois Hollande in Paris about the Greek crisis, and they declared that the door is open for more negotiations with Athens.

But European officials did not immediately change their stance against easing terms of a possible new bailout in the wake of the 61 percent vote against more austerity.

Economic analysts say the long-running dispute could still force Greece from the 19-nation euro currency bloc, which would make it the first country to exit the eurozone in its 16-year history.

In Washington, White House spokesman Josh Earnest said it is in “the collective interests” of Europe and the United States that Greece reaches a new bailout deal with its lenders, with Athens agreeing to “a package of reforms.”

U.S. stock prices moved down, but the declines were not as large as some analysts predicted. Most markets around the world, including those in Europe, fell because of the financial uncertainty created by the Greek vote.

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