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Greece’s Prime Minister Alexis Tsipras has offered new concessions to the country’s creditors, media reports say.
A letter to creditors obtained by the Financial Times says Mr Tsipras is prepared to accept most conditions that were on the table before talks collapsed and he called a referendum.
On Tuesday, eurozone finance ministers refused to extend the previous bailout.
Greece became the first European Union country to fail to repay a loan to the International Monetary Fund.
The Financial Times says that Mr Tsipras was prepared to accept a deal made by creditors over the weekend, if a few changes were agreed.
Lenders’ proposals – key sticking points
- VAT (sales tax): A new system to come in from 1 July, with three rates, aimed at boosting annual revenue by 1% of total output (GDP)
- Most goods to be taxed at top rate of 23%, including restaurants and catering and processed foods
- Reduced rate of 13% for basic food, electricity, hotels and water
- Super-reduced rate of 6% for medicines, books and theatre
- End exemptions and eliminate VAT discounts for Greek islands
- Create strong disincentives to early retirement
- Move retirement age up to 67 by 2022
- End Ekas “solidarity” top-up grant that some 200,000 poorer pensioners get – immediate Ekas cut for wealthiest 20% of recipients, and cut completely by 2020
- Pensioners’ healthcare contributions to rise to 6%, from 4%
The FT says a letter sent by Mr Tsipras to creditors asked for only two changes: that a VAT discount to Greek islands is maintained, and that the process of raising the retirement age to 67 begins in October and not immediately.
Greece’s national broadcaster ERT says Mr Tspiras would accept a deal with only minor requests for changes.
European markets surged on the news Greece might be willing to accept a deal.
The BBC’s economics editor Robert Peston said Mr Tsipras “seems to have caved in”.
Two key meetings are to take place to discuss aid for Greece, hours after Athens missed the deadline for a €1.5bn (£1.1bn, $1.7bn) payment to the IMF.
In one, officials with the European Central Bank (ECB) will decide whether to grant an emergency loan to Greece.
In the second, eurozone finance ministers will discuss Greece’s latest proposal for a third bailout. It would last two years and amount to €29.1bn.
Ministers will discuss the proposal in a conference call at 15:30 GMT.
With the eurozone bailout expired, Greece no longer has access to billions of euros in funds.
Only three other countries are still in arrears to the IMF – Sudan, Somalia and Zimbabwe. Between them, they owe €1.6bn, only marginally more than Greece.
The ECB has also frozen its liquidity lifeline to Greek banks, that did not open this week.
Withdrawals from cash machines are capped at just €60 a day and long queues have been forming outside banks.
However, up to 1,000 branches re-opened on Wednesday to allow pensioners – many of whom do not use bank cards – a one-off weekly withdrawal of up to €120.
The Associated Press news agency said many pensioners had waited outside banks from before dawn, only to be told to return on Thursday or Friday.
Some pensioners were told their pensions had not yet been deposited, AP said.
“It’s very bad,” said Popi Stavrakaki, 68. “I’m afraid it will be worse soon. I have no idea why this is happening.”
Greek newspaper headlines on Wednesday
Ta Nea (centre-left): “Fears of levy on deposits” – “The ghost of Maidan [Square in central Kiev, Ukraine] over Syntagma Square: The tension between pro-European and anti-European supporters is mounting as we approach Sunday’s referendum, leading to fears of Ukraine-style division”
