The differences between the IMF and Troika during the summit of eurozone leaders may have finally resolved.

After 16-hours of negotiations, the Belgian PM tweeted simply that “Finance ministers will as a matter of urgency discuss how to help #Greece meet her financial needs in the short term (bridge financing).”

Mr Tusk then added that “Following national procedures, the #Eurogroup will work with the Institutions to swiftly take forward the negotiations. #Greece.”

Manos Giakoumis, a representative for the Cyprus government said: “it seems we have a deal.”

Athens was asked to pass a series of sweeping reforms by Wednesday or face exiting the euro but it seems there has been a breakthrough in talks aimed at securing a new bailout deal for Greece.

Greece seeked a new loan of €53.5bn over three years to avoid financial collapse and a potential exit from the single currency, however, officials in Brussels argued the figure would have to be up to €86bn – insisting on tougher austerity measures.

Greek prime minister Alexis Tsipras held out against the involvement of the International Monetary Fund (IMF) in any bailout as well as the request of €50bn (£35.8bn) worth state-owned assets in a fund for eventual privatisation.

But in a sign of division among the leaders, a document sent to them by finance ministers also included an option for Greece to temporarily leave the euro if no deal was agreed – a potential “time-out”.

Not all ministers endorsed that idea, which a senior EU source said was illegal and would not make it into the summit statement.

The Greek government has apparently agreed to a series of demands it previously criticised. In the document, Greece agreed to carry out “ambitious” pension and tax reforms and “significantly” increase its privatisation programme.

And it has also accepted it will push reforms into law this week on a first set of measures as it tries to avoid a “Grexit”.
But stumbling blocks remain.

It includes the Greek parliament, which may decide Mr Tsipras has gone too far in the negotiations.

His own labour minister said early on Monday that the bailout plan that was emerging was “not viable”.

The government believes some of the measures demanded by creditors, such as the requirement to put €50bn worth of state-owned assets into a fund for subsequent sell-off, are intended to “humiliate” them.

One diplomat said it was tantamount to turning the country into a “German protectorate”, stripping it of more sovereignty.

The list of demands has led to a social media backlash against Germany, with #ThisIsACoup the second top trending hashtag on Twitter.

The draft said Greece needs €7bn (£5bn) by 20 July, when it must make a payment to the European Central Bank, and a total of €12bn (£8.6bn) by mid-August when another ECB payment is due.

Greece’s proposals for a new bailout, backed by parliament, are aimed at offering to bring in tax rises and spending cuts in return for another loan.

Greece has already had two bailouts worth €240bn (£172.2bn) from eurozone countries and the International Monetary Fund since 2010.

Source: bbc.com, www.news.sky.com