€85 billion – How Sweet The Sound 

€85 billion – How Sweet The Sound 

LONDON, August 12 – Greece negotiators have agreed in principle with its creditors says the European Commission.  The negotiated Technical Agreement includes large scale privatization of state assets, increase in retirement age to 67. Also additional VAT and cuts to social services expenditures.

PM Alexis Tsipras has asked Parliament to meet today with a vote on the Technical Agreement expected on Thursday. 

Athens must secure a deal on a new €85 billion (£60 billion) three-year agreement to remain in the eurozone and avoid bankruptcy. A debt repayment to the European Central Bank – €3b billion – is due on August 20 which will put in place a new €85 billion three year agreement. 

Technical deal

The creditors include the International Monetary Fund, the European Central Bank, and the European Stability Mechanism. They have insisted that Greece establish an independent privitasation fund and will closely monitor how non-performing bank loans are administered. Past European aid packages to Greece have failed because it lacked proper oversight and controls.

Greece has agreed to deregulation of  the natural gas market.

Spanish PM Mariano Rajoy said the Eurogroup finance ministers are scheduled to meet on Friday to consider approval of the Technical Agreement.

Reporting at BBC News contributed to this report.

Greek bailout deal – some key points

A Greek official said:

• The deal secures funding of around €85bn to service debt as well as to settle public payment delays and arrears over the next three years
• There will be a deal on primary surplus targets: 0.25% GDP deficit for 2015, 0.5% surplus in 2016, 1.75% in 2017 and 3.5% in 2018
• The agreement reduces fiscal surpluses for the next 3 years by 11% of GDP – “As a result there will be no new austerity measures in the forthcoming period,” the official said
• Recapitalisation of the banking sector will be completed before the end of 2015, with €10bn being immediately available
• The government did not consent to the sale of non-performing loans to private companies
• The agreement provides for a €35bn development package, known as the “Juncker package”

SOURCE:  BBC News