Analysis and reaction of the deal as Greek agreement is reached at last following 17 hours of tense negotiations among eurozone leaders and ministers Latest 12.32 Why the Greeks have blinked
My colleague Szu Chan has laid out what exactly creditors are demanding from the Greeks. Key points below:
IMF involvement
PM Tsipras said he didn't want the Fund to be involved in a new rescue after their involvement is set to end in March 2016. However, any new rescue loan from the ESM requires legal involvement from the Fund. Thus: "Greece will request continued IMF support (monitoring and financing) from March 2016."
Sequestration of assets
This is a new demand that emerged from finance ministers yesterday. It would involve €50bn of Greek assets placed in a private fund and used to pay off their debts.
Mr Tsipras objected to it being placed in Luxembourg or controlled by a German state-owned bank. The fund will now be managed by the Greeks. Some of the money will also be used for growth initiatives and to recapitalise Greek banks. The initial purpose of the fund was solely to pay down their loans.
Debt relief
This one's the rub. Greeks want a clear promise to alleviate their debt burden as part of any new rescue. Last night's statement provides only a commitment to think about it should the Greeks manage to first get through all the legislative hurdles they face by Wednesday. The text reads: "the Eurogroup stands ready to consider, if necessary, possible additional measures (possible longer grace and payment periods) aiming at ensuring that gross financing needs remain at a sustainable level."
12.04 Tsipras: we avoided plan for "financial suffocation"
The Greek PM has this morning defended last night's basis for an agreement, arguing that he managed to resist measures that would have led to a collapse of the banking system.
"We found ourselves before difficult decisions, tough dilemmas. We took the responsibility of the decision in order to avert the implementation of the more extreme aims (of) the more extreme conservative circles in the European Union."
He says Greece managed to resist a request that Greece transfer public assets abroad as well as a "plan of financial suffocation and the collapse of the banking system," which he said had been "planned down to its last detail recently" and had already started to be implemented.
The PM is due to meet with his junior coalition partner and defence minister later this evening.
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