ANKARA (AA) – Greece and its institutional creditors have come to an agreement on a third bailout, the Greek Finance Ministry reported on Tuesday.
The institutional creditors — the International Monetary Fund, the European Central Bank, and the EU — have been working with Greek officials to finalize the bailout agreement in Athens since the end of June.
The projected agreement was for a three-year, €86 billion ($94.3 billion) bailout, with the condition that the Greek government enact a series of far-reaching economic reforms.
Both sides made compromises on issues like treatment of non performing bank loans, the privatization fund, and deregulation of the energy market, according to the ministry.
However, some details regarding further economic reforms remain under discussion and will be examined by technicians from the creditors.
The government agreed with its creditors on the primary budget targets for 2015 to 2018. In 2015, there will be a primary deficit target of minus 0.25 percent of GDP; in 2016, the target will be for a primary surplus of 0.5 percent, the target in 2017 will be for a primary surplus of 1.75 percent, and the target will be for a primary surplus of 3.5 percent in 2018.
The bailout agreement will go to the Greek parliament for ratification on Aug. 18. It will then go to the other eurozone parliaments for final approval.
German lawmakers have, however, expressed doubts about the passage of the deal as they are not satisfied that sufficient economic reforms are included.
Greece must make a payment of €3.2 billion ($3.5 billion) on Aug. 20 to the European Central Bank. The bailout agreement is expected to provide Greece with funds to make the payment.
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