Athens has offered its creditors a list of concessions on its debt management which is currently being revised. If the EU confirms the deal, it will result in a €7.2bn bailout payment, saving the country from a possible exit from the euro.
Greece is set to default on a €1.55bn payment to the International Monetary Fund (IMF) on June 30.
A deal is however still far from certain. Negotiation may delay the loan, raising questions if Athens will have to ask the IMF for an extension, according to officials representing the creditors.
Eurozone finance ministers will come together on Wednesday evening to discuss the last-minute plan from Athens and the bailout package. If the ministers accept the offer and the Greek national parliament agrees on the conditions, Prime Minister Tsipras will be able to alleviate his debt to the IMF.
The offer includes several concessions on pensions and taxes. Corporate taxes will be raised from 26% to 29%, with an additional tax on high profits. The possession of luxury yachts will be taxed higher, and further cuts are planned for the defence budget.
A minor pension reform and increase of VAT are also part of the 11-page offer, whilst careful not to cross the anti-austerity lines set by Prime Minister Tsipras’s left-wing Syriza party.
The tough stance of several European finance and economy ministers, including Germany’s Wolfgang Schäuble and France’s Emmanuel Macron, and the pressure imposed by more radical members of Tsipras’s party have narrowed the possibility for compromise.
Greece currently owes €323bn (£230bn) to foreign and domestic investors, the largest parts being owed to the EU and the IMF. Germany represents its largest creditor with €56bn currently invested.