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Eurozone strikes deal with Greece

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Eurozone leaders have agreed to offer Greece a third bailout, after marathon talks in Brussels. Amid one of the worst crises in the EU’s history, the head of the European Commission said the risk of Greece leaving the eurozone had been averted.

Greek Prime Minister Alexis Tsipras said that after a “tough battle”, Greece had secured debt restructuring and a “growth package”.

Greece will now have to pass reforms demanded by the eurozone by Wednesday. These include measures to streamline pensions, raise tax revenue and liberalise the labour market.

An EU statement spoke of up to €86bn (£61bn) of financing for Greece over three years.

Though it included an offer to reschedule Greek debt repayments “if necessary”, there was no provision for the reduction in Greek debt – or so-called “haircut” – that the Greek government had sought.

Parliaments in several eurozone states also have to approve any new bailout.

“There will not be a ‘Grexit’,” said European Commission chief Jean-Claude Juncker, referring to the fear that if there had been no deal, Greece could have crashed out of the euro.

Mr Tsipras also said he had the “belief and the hope that… the possibility of ‘Grexit’ is in the past”.

“The deal is difficult but we averted the pursuit to move state assets abroad,” he said. “We averted the plan for a financial strangulation and for the collapse of the banking system.”

Jeroen Dijsselbloem, the head of the eurozone group of finance ministers, said the agreement included a €50bn Greece-based fund that will privatise or manage Greek assets. Out of that €50bn, €25bn would be used to recapitalise Greek banks, he said.

There have been mixed views on the streets of Athens to the new agreement

You may also like: Bailout: Greece offers concessions to creditors

Greek debt crisis timeline

26 June: Greece halts talks with creditors and calls referendum on bailout terms

28 June: European Central Bank limits emergency funding to Greece; Greece imposes capital controls, forcing banks to stay shut

30 June: Eurozone bailout expires, Greece misses €1.6bn payment to IMF

5 July: Greeks overwhelmingly vote “No” in referendum, rejecting creditors’ conditions

9 July: Greek Prime Minister Alexis Tsipras presents new proposals to creditors, including measures rejected in referendum

13 July: Eurozone leaders agree to offer Greece third bailout after marathon talks

– BBC

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