The Minister of Finances Euclid Tsakalotos submitted a request for a three-year program to the European Stability Mechanism (ESM) on behalf of the Greek government. In the request, Mr. Tsakalotos explains that the aim of the loan, which is rumored to be about 50 billion euros, is to cover Greece’s debt obligations while ensuring financial stability.
Furthermore the Greek Minister explains that he will soon present a series of tax-reform and pension-related measures that may be implemented immediately. These proposals will be presented as early as the beginning next week. Mr. Tsakalotos added that the Greek government will detail its proposals for a comprehensive and specific reform agenda on Thursday.
The ESM informed the European Commission and European Central Bank, asking them to consider the request. Interestingly, the ESM calls for the Commission and ECB to assess of the sustainability of the Greek public debt, aside from Greece’s needs and the risk posed to the financial stability of the Eurozone and it members.