End of Greek drama, agreement reached

Athens and its international creditors reached an agreement early this morning on a third financial aid package, allowing Greece to avoid bankruptcy and remain in the eurozone, reports the Patria news agency.

“The agreement has been reached. Some minor details are still being negotiated,” said an unnamed Finance Ministry official after marathon talks overnight in Athens, Reuters reported.

Greek officials had hoped to reach an agreement with creditors by today, which would be sent for approval to the Parliament in Athens by August 18.

The negotiations involved Greek Finance Minister Euclid Tsakalotos and Economy Minister George Stathakis, along with representatives from the European Central Bank, the International Monetary Fund, and the European Stability Mechanism, regarding the new aid package.

Athens was in a hurry to finalize the agreement on the new program worth approximately 86 billion euros by Tuesday in order to receive the first tranche by August 20, when it faces a debt payment to the European Central Bank.

If the draft memorandum of understanding and the renewed analysis of Greece's debt sustainability are ready on schedule, it is expected that the Greek government and Parliament will approve them by Thursday, paving the way for a meeting of eurozone finance ministers on Friday.

This agreement on Greece's financial activities represents an important step toward reaching a comprehensive deal on an aid package worth around 85 billion euros.

It was agreed that Greece will record a primary deficit (budget balance excluding debt payments) of 0.25 percent of gross domestic product (GDP) in 2015, followed by a primary surplus of 0.5 percent of GDP in 2016, 1.75 percent of GDP in 2017, and 3.5 percent of GDP in 2018.