Greece Asks for New Bailout from European Stability Mechanism

German Prime Minister Angela Merkel has reportedly rejected the negotiation proposal

Markets are on the move again as urgent negotiations between Greece and its creditors could be on the way in the coming hours. The Greek Prime Minister Alexis Tsipras has reportedly asked for a new two-year bailout agreement financed by the European Stability Mechanism.

Greece has been widely expected to miss its payment to the International Monetary Fund later this evening. Apparently, the lack of support for the referendum in Greece sought by the Greek government is forcing it to take a different path.

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The last-minute offer extended by the President of the European Commission, Jean-Claude Juncker, has tempted Greek Prime Minister Alexis Tsipras to comply with the requirements voiced by the creditors.

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There is no clarity as to how the new deal would be ratified, since it has to pass approval in the German and Greek parliaments. Some sources suggest that there could be a way around this, but no confirmation has been given by either party.

Confirming the statement of the Greek prime minister’s office, Eurogroup’s chief Jeroen Dijsselbloem cancelled a TV interview in order to deal with the Greek bail out request. According to the plan which was last distributed by the European Commission there has been some sort of a debt relief discussed in the package, while the Greek government cancelled a press briefing.

UPDATE: German Prime Minister Angela Merkel has reportedly rejected the negotiation proposal and stated that the referendum results must be awaited  in order to form a base for new negotiations.

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