Greece gives proposal as bailout deal’s deadline set for Sunday

Greek premier says his government has submitted its international creditors a proposal for an agreement on a bailout deal, while expressing hope to reach the deal on the Sunday deadline with his country’s creditors.

The proposal contained “credible reforms that are socially just and include in reciprocity a commitment to cover the country's financial needs in the medium term, a strong investment package to counter big problems such as unemployment, as well as the start of substantial talks and the restructuring of debt,” said Greek Prime Minister Alexis Tsipras on Tuesday.

He added that the proposal, submitted to the eurozone finance ministers known as the Eurogroup and the European Council, was what had been formulated as a national strategy by a political leaders' meeting in Athens.

His remarks, which were made after a Tuesday meeting with other eurozone leaders in Brussels, Belgium, come as European leaders have given debt-stricken Greece until Friday to submit concrete proposals on the bailout deal with its creditors, a deadline which had earlier been set on Thursday by European Council President Donald Tusk.

Meanwhile, European Commission President Jean-Claude Juncker said that the EU had prepared itself for any eventuality due to the Greek debt crisis, including the so-called “Grexit scenario” - Athens' possible exit from the euro single currency.

“Tonight I have to say loud and clear, the final deadline ends this week,” Tusk told a news conference on Tuesday evening, adding, “The situation is really critical” and the EU cannot “exclude the black scenarios of no agreement… including the bankruptcy of Greece and the insolvency of its banking system.”

Meanwhile, German Chancellor Angela Merkel has called for a new years-long debt program regarding Greece’s crisis.

European leaders have given Greece a final deadline of Sunday to reach a new bailout deal. The 28 EU leaders will then examine the Greece’s proposed-plan in a make-or-break Sunday summit.

In July 5, majority of Greeks rejected another tough austerity package in return for fresh bailout loans in a dramatic referendum.

Athens received two bailout packages in 2010 and 2012 worth a total of €240 billion ($272 billion) from its creditors following its 2009 economic crisis. In return for the bailouts, Athens undertook to implement harsh austerity measures, which sparked public outcry.

Greece has already defaulted on a €1.5-billion debt payment to the International Monetary Fund, which, together with the European Commission and the European Central Bank, forms the troika of Greece’s international lenders.

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