Greece Has Not Presented Any Concrete Proposals – Eurozone

GreeceThe Eurozone says Greece has not presented any concrete proposals to request for a new bailout.

The union’s statement is coming after the ballots were counted as Greece voters rejected the terms of an international bailout in a poll with 61% “no”, against 38% “yes”.

In the meantime, Greek Prime Minister, Alexis Tsipras, said Greeks made a “brave choice” in voting to reject the terms, despite the European officials’ caution that the debt crisis could see the country ejected from the Eurozone.

In another development, Greece’s Finance Minister, Yanis Varoufakis, who often clashed with creditors also resigned.

However, Greece made a presentation earlier on Tuesday to request for a new bailout, but nothing was put on paper.

The country’s new Finance Minister, had been expected to draft a new letter requesting for European stability mechanism support.

The Minister is also expected to present proposals from the Greek side on what the substance would look like, so leaders could reach an agreement.

Greece Debt Crisis: EU Leaders Gather For Critical Summit

greeceEuropean leaders are gathering for an emergency summit in Brussels that could break the deadlock around the debt crisis facing Greece.

On Sunday, the Greek Prime Minister, Alexis Tsipras, set out new proposals to try and prevent a default on a €1.6bn (£1.1bn) International Monetary Fund (IMF) loan.

The proposals, according to an European official, held plenty of promise.

Greece risks crashing out of the single currency and possibly the European Union (EU) if it fails to repay the loan by the end of June

Talks have been in deadlock for five months. The European Commission, the IMF and the European Central Bank (ECB) are not willing to unlock the final €7.2bn tranche of bailout funds until Greece agrees to economic reforms.

The three creditors must agree to the deal offered by Greece, to ensure Monday’s talks have a clear focus.

Further findings revealed that if deposit withdrawals continue at the current pace, Greek banks will soon exhaust eligible assets they can pledge to the Bank of Greece for cash under the Emergency Liquidity Assistance (ELA) scheme.

Before then, the ECB could turn off the ELA drip feed because it is forbidden to allow the Bank of Greece to lend to insolvent banks.