Lenders locked in marathon talks for Greek bailout deal

Greece and its international lenders were locked in marathon talks overnight to seal a multi billion-euro bailout deal on Tuesday.

 

The indebted country is hoping to wrap up a deal for 86 billion euros in fresh loans so it can get parliamentary and other approvals for aid to flow by Aug. 20, when a 3.2 billion euro debt payment is due to the ECB.

An agreement would mark the end of a painful chapter of aid talks for Greece, which fought against austerity terms demanded by creditors for much of the year before accepting a deal under the threat of being bounced out of the euro zone.

After lengthy negotiations on Sunday and Monday, Greek Finance Minister Euclid Tsakalotos said talks were going "quite well" and was optimistic that an agreement will be reached soon.

During talks which dragged through the night, the sides agreed on final fiscal targets which should govern the bailout effort, aiming for a primary budget surplus (which excludes interest payments) from 2016, a government official said.

The targets, adapted from an earlier baseline scenario, foresee a primary budget deficit of 0.25 per cent of gross domestic product in 2015, a 0.5 per cent surplus from 2016, 1.75 per cent in 2017, and a 3.5 per cent surplus in 2018, the official said.

Source: CBC News