Monday, July 13, 2015

The Latest: Eurozone summit reaches deal on Greek bailout

 

Greek Finance Minister Euclid Tsakalotos, right, speaks with Managing Director of the International Monetary Fund Christine Lagarde during a round table meeting of eurogroup finance ministers at the EU Lex building in Brussels on Sunday, July 12, 2015. Greece has another chance Sunday to convince skeptical European creditors that it can be trusted to enact wide-ranging economic reforms which would safeguard its future in the common euro currency. (AP Photo/Michel Euler)

BRUSSELS (AP) — The latest from Greece's financial crisis (all times local):

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Greek Prime Minister Alexis Tsipras, left, speaks with, from left, European Commission President Jean-Claude Juncker, French President Francois Hollande and Belgian Prime Minister Charles Michel during a meeting of eurozone heads of state at the EU Council building in Brussels on Sunday, July 12, 2015. Skeptical European creditors raced Sunday to narrow differences both among themselves and with Athens, aiming to come up with a tentative agreement to stave off an immediate financial collapse in Greece that would reverberate across the continent. (AP Photo/Geert Vanden Wijngaert)

Greek Prime Minister Alexis Tsipras, left, speaks with, from left, European Commission President Jean-Claude Juncker, French President Francois Hollande and Belgian Prime Minister Charles Michel during a meeting of Eurozone heads of state at the EU Council building in Brussels on Sunday, July 12, 2015. Sceptical European creditors raced Sunday to narrow differences both among themselves and with Athens, aiming to come up with a tentative agreement to stave off an immediate financial collapse in Greece that would reverberate across the continent. (AP Photo/Geert Vanden Wijngaert)

 

9 a.m.

Summit chair Donald Tusk says Eurozone leaders have unanimously agreed on a bailout deal for Greece. In a tweet Monday, Tusk said the European bailout program for Greece includes "serious reforms" and "financial support."

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8:35 a.m.

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German Finance Minister Wolfgang Schaeuble, sitting center, goes over papers with members of his delegation during a round table meeting of eurogroup finance ministers at the EU Lex building in Brussels on Sunday, July 12, 2015. Greece has another chance Sunday to convince skeptical European creditors that it can be trusted to enact wide-ranging economic reforms which would safeguard its future in the common euro currency. (AP Photo/Virginia Mayo)

German Finance Minister Wolfgang Schaeuble, sitting centre, goes over papers with members of his delegation during a round table meeting of euro group finance ministers at the EU Lex building in Brussels on Sunday, July 12, 2015. Greece has another chance Sunday to convince sceptical European creditors that it can be trusted to enact wide-ranging economic reforms which would safeguard its future in the common euro currency. (AP Photo/Virginia Mayo)

 

The European Union's top economy official says he's hopeful for a deal to keep Greece in the euro — and that the German and French leaders will be at the centre of it.

Pierre Moscovici played down ideological differences among Greece's European creditors on Monday, telling France's RTL radio that the marathon overnight negotiations show there is a "shared willingness to ensure that Greece remains in the euro."

Earlier in the negotiations there had been indications of splits among the European countries, with German Chancellor Angela Merkel demanding tough conditions before releasing aid while French President Francois Hollande prioritized unity among the nations that use the euro.

Moscovici said Merkel and Hollande have "solid and direct" relations despite ideological differences and that "there is no solution for Europe" without agreement between the Eurozone's two leading powers.

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8 a.m.

Greece and its creditors may be working past their self-imposed deadline, but currency traders don't seem too alarmed about the uncertainty in the Eurozone.

The euro was up 0.2 per cent Monday at $1.1140.

Craig Erlam, senior market analyst at OANDA in London, said investors appear fairly optimistic that the two sides will soon strike a deal, at least in principle.

He says that with Greek banks on the verge of collapse, "the country really has run out of time."

Greece's banks have been closed for two weeks and cash-machine withdrawals have been limited to 60 euros a day as the European Central Bank rejected calls to increase the amount of emergency liquidity for Greek banks. Many believe they will run out of cash this week.

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7:35 a.m.

Talks aimed at securing Greece's future in the euro have dragged into Monday with few signs that a meeting of the 19 leaders of the Eurozone is coming to an end.

More than 15 hours after they started their discussions, Greek Prime Minister Alexis Tsipras appears to be holding out against two demands from his creditors: one related to the involvement of the International Monetary Fund in any bailout agreement, and the other a proposal that Greece set aside 50 billion euros ($56 billion) worth of state-owned assets in a fund for eventual privatization.

Summit chair Donald Tusk has presented a "compromise proposal," details of which remained sketchy Monday morning.

Any deal would see Greece accepting more austerity in exchange for a bailout to prevent its economy from collapsing.

The Latest: Eurozone summit reaches deal on Greek bailout - Yahoo News

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