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In a letter from Minister of Finance Efklidis Tsakalotos to the European Stability Mechanism, Greece has submitted an official request for a new loan from the euro zone. In return, Athens has committed to implement budgetary measures as early as the beginning of next week.

The text does not specify concrete measures but describes their framework, as follows: measures relating to reforms in the tax and the pension systems. The Greek media comment that the Minister of Finance apparently describes changes in VAT rates, increases in the "luxury" tax and changes in the calculation of the "solidarity" tax as well as changes associated with early retirement.

Efklidis Tsakalotos also states that Greece is committed to remaining in the euro zone. With regard to the settlement of the huge debt, he writes, "Greece welcomes an opportunity to explore potential measures to be taken so that its official sector related debt becomes both sustainable and viable over the long term."

Meanwhile, according to the German newspaper Bild, the third bailout to Greece would last three years within which the country would receive loans amounting to 51 billion euro.

According to the newspaper, which refers to the German and French government sources, the programme, if signed, would be extended if necessary but only on condition that it was successfully implemented.

It is worth noting that the stated amount of 51 billion euro was the forecast for Greece’s financial requirement over the coming years that the International Monetary Fund has set in its recently published report. Bild however indicates that if the programme is extended after the expiry of the three-year period, Greece would require more additional funding.

The euro zone member states and, respectively, their citizens would finance the programme but it is not yet clear which of them would do so, as it is expected that not all parliaments will vote in favour of adopting it.

The European Central Bank will be significantly involved and it will possibly take immediate action to support Greek banks that are running out of liquidity, as according to the publication, Frankfurt is already discussing the likelihood of taking emergency measures to ensure it.