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What Tsipras wrote to ESM?

Greek Prime Minister Alexis Tsipras has sent a formal letter to European Stability Mechanism (ESM), which is a € 500 billion fund asking a third bailout for Greece.

Key highlights from the letter -

  • Greece has asked for a three year bailout program, instead of a two year it asked last week prior to the referendum.

  • The amount of bailout is not clear as of now but IMF estimates it could be as high as € 70 billion.

  • The letter shows, in spite of opposition from European lenders Greece might still be seeking some kind of debt relief. Though it has been too explicit in the letter - "Greece welcomes an opportunity to explore potential measures to be taken so that its official sector related debt becomes both sustainable and viable over the long term."
  • Greece is going to present details of the proposals on Thursday.
  • Letter also points that Greek government is ready to implement some of the measures which was discussed in previous proposals such as tax reforms as early as next week.
  • Greece is also looking for some bridge financing to reopen its banks and to payback IMF and ECB.

The letter ends by suspending the previous request made to ESM.

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