Greece Seeks 3-year Aid Program, Rushes to Detail Reforms

TEMPO.CO, Jakarta - With a deadline to come up with a detailed economic reform plan closing in, Greece requested a new three-year rescue from its European partners on Wednesday, July 8, 2015, as signs grew its economy was sliding toward free-fall without an urgently needed bailout.

As the country's banking system teetered near the edge, the government extended bank closures into next week, while international creditors were in open disagreement over whether to award the country debt relief — with Germany at odds with the International Monetary Fund.

Without a deal, Greece faces an almost inevitable collapse of the banking system, which would be the first step for the country to fall out of the euro.

As the deadline set for Thursday, July 9, 2015, loomed, the government sought to reassure its European creditors that it would enact tax and pension reforms quickly in exchange for loans from Europe's bailout fund, the European Stability Mechanism.

In a formal request that was filled with vague promises but short on details, the Greek government pledged to "immediately implement a set of measures as early as the beginning of next week" — but did not specify what these were.

After months of fruitless negotiations with the Greek government, the skeptical eurozone creditor states have said they want to see a detailed, cost-accounted plan of the reforms by Thursday. That is meant to give enough time to review the plan before all 28 leaders of the full European Union meet on Sunday, July 12, 2015, in what has been termed as Greece's last chance to stay in the euro.

But Greece's major creditors were hardly in lock-step over what path to take in dealing with the struggling but defiant EU member nation.

AP