Greece has a plan.
On Thursday, Greece submitted its latest round of bailout proposal to its European creditors, ahead of a midnight deadline.
The Financial Times noted that this plan is part of a request for a new 3-year bailout.
Headlines from Bloomberg on Thursday evening characterised this plan as similar to the European Commission’s plan presented on June 26.
This plan prompted Greek prime minister Alexis Tsipras to call a surprise referendum on the issue. Greece voted firmly against this plan.
Greece’s proposal on Thursday includes debt restructuring, a 35 billion euro growth package, a proposed primary budget surplus equal to 1% of GDP in 2015, followed by surpluses of 2%, 3%, and 3.5% from 2016-2018.
This plan also has the same value-added-tax reform effective as of July 1, which targets a net revenue gain of 1% of GDP. This plan also proposes an increase on corporate taxes to a rate of 28% from 26%.
Greece had a deadline of midnight tonight to submit a plan. Earlier reports by Bloomberg, citing Skai TV, said that Greek parliament would vote on these proposals on Friday.
A Eurogroup meeting is scheduled for Saturday, and on Sunday all 28 European Union members will convene a summit.
The Eurogroup is comprised only of the 19 finance ministers from euro-using members of the EU.
The reality is, however, that Greece needs some sort of plan to get approved. Reports in recent days have indicated that Greek banks — which have been closed for over a week and will remain closed until Monday — may only have enough cash to last 4 more days.
Capital controls have also been in place over the same period limiting the amount of cash that can be taken out of ATMs by Greeks to 60 euros per day.
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