What are latest offerings from Greek lenders?

Below are the key aspects of latest offerings from European creditors to Greek government.

• Greek government need to take up reforms to ensure budget surplus of 1% in 2015, 2% in 2016, 3% in 2017 and 3.5% in 2018.

• Though originally lenders were asking for two tier VAT systems, it has accepted Athens proposals. There would be three tier VAT systems - a general 23% rate on restaurants, hotels, Catering, 13% on basic food. Energy and water including sewerage and super reduced 6% on medicines, books and theatres.

• Pension reforms remain a sticking point between lenders and Greek government. Lenders have kept their demand that early retirement schemes be curtailed and increase of retirement age quickly. Lenders want that change to take effect by 2022 whereas Greek government originally wanted 2036 and agreed to 2015 in latest offerings.

• EKAS, a pension top up program. Remains at heart of the debate. Lenders were looking to scrap the program by 2017 however in latest document they have provided concession by raising the time line to December 2019. Greece was looking for 2020.

• Lenders have accepted Greek demand that pensioners contribute more from 6% to current 4% towards health care. This got accepted by lenders.

• Taxes has remained another area of heavy debate - Creditors maintained their demand that Greece islands need to pay same taxes as mainland which Tsipras on behalf of his coalition partners Independent Greeks, fought heavily for. Creditors have kept the corporate Tax rise limited to 28% rather than 29% demanded by Greeks. Greeks wanted to pose one-time tax of 12% on corporate profits above € 500,000, Creditors have scrapped the idea but has kept the idea to raise luxury tax on Yachts from 10% to 13%.