Greece’s Parliament must approve these measures by Wednesday. In addition, Europe will assign monitors to ensure that Greece will also have to give up control of the proceeds from government sales, with the bulk being earmarked for debt payments.
Greece had been pushing for some of its massive debt load to be canceled. Europe rejected that, but said it would consider easing the terms with longer grace periods.
Greeks unhappy but resigned: ‘What can we do?’
Still, the deal is just a proposal, and it does not mark an immediate end to the crisis. It could face resistance in Greece’s Parliament.
And Greece desperately needs the European Central Bank to restart money flows to re-open up its shuttered banks. The ECB however said Monday that it was not ready to do so yet.
The leaders hammered out the agreement at the marathon overnight meeting in Brussels, after weeks of frantic diplomacy sparked by Greece walking away from a previous bailout program.
That decision left it without the cash to make a payment to the International Monetary Fund, triggered the closure of its banks, and sent the economy into free fall.
Fast running out of money, Greece faced an awful choice: Accept the conditions demanded by the only people willing to lend it money, or leave the euro.
Speculation about the currency should now fade, but it’s not clear how soon the money the country desperately needs will flow, and when its banks will reopen.