Summary: The euro zone leaders' agreement with Greece

Euro zone leaders set tough conditions today for Greece to negotiate a third bailout to keep the near-bankrupt country in the euro zone.

Following is a summary of the leaders' statement.

* Greece will request continued IMF support from March 2016.

* Greece to pass by Wednesday measures including simplifying VAT rates and applying tax more widely, cutting back on pensions and making the national statistics agency independent.

* Greece to pass by July 22 measures overhauling its civil justice system and implementing EU bank bail-in rules.

* Greece to set clear timetable for following measures:

- ambitious pension reform;

- product market reform including Sunday trading, pharmacy ownership, milk and bakeries;

- privatise electricity transmission network;

- review collective bargaining, industrial action and collective dismissals;

- strengthen financial sector, including action on non-performing loans and eliminate political interference.

* Greeks shall also take the following actions:

- privatisation, involving transfer of assets to independent fund in Greece designed to raise 50 billion euros, three-quarters of which would be used to recapitalise banks and to decrease debt;

- cut costs of public administration and reduce political influence over it. First proposal to be provided by July 20.

- ensure creditor approval for key legislation before submitting to public consultation or parliament.

The above-listed commitments are minimum requirements to start the negotiations with the Greek authorities.

* Financing needs are 82-86 billion euros. Decision on new package urgently required given financing needs of 7 billion euros by July 20 and further 5 billion euros by mid-August.

* A possible new ESM programme would have to include a 10-25 billion euro buffer for banks.

* Possible debt reprofiling but no nominal haircuts.


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