Greece and international creditors have reached agreement on a reform package

Greece and its foreign lenders reached a final agreement on the reform project. This was stated by Greece’s Finance Minister Euclid Tsakalotos, reports Reuters.

The agreement includes labour reform and energy reform, pension cuts and tax increases. This is a significant achievement in the negotiations with international lenders, which began in October 2016.

“There was white smoke,” said Tsakalotos, referring to the election process of the Pope in the Vatican. “Negotiations on the technical agreement has been completed for all the questions <…> the way for negotiations on debt relief laid” — he said.

According to the Agency, Athens has promised to cut the pension in 2019 and to raise taxes in 2020 to save up to 2% of GDP.

Now Greece needs to adopt new measures before Euro zone Finance Ministers will approve the loan. Athens requires €7.5 billion on the repayment of the debt. The next scheduled Eurogroup meeting will be held on may 22, it including will discuss this issue.

Foreign creditors regularly assess the execution by Greece with its demands: the European Commission, the European Central Bank, the international monetary Fund (IMF) and the European stability mechanism.

In March 2017 Greece asked for €3 billion from the world Bank for a programme to combat unemployment. The money will be able to create 300 thousand jobs in three years to reduce the level of unemployment in the country, amounting to 23%, said in Athens.

At the beginning of 2016 the public debt of Greece amounted to € € 321.3 PSM billion, or almost 180% of GDP. More than half of the country’s debt are loans from European countries.

In the framework of providing financial assistance to European countries Greece has received around €200 billion In may 2016, the IMF proposed to the creditors of Greece from the Eurozone to agree to a delay until 2040, interest payments on loans.