The Latest: Greece Needs 85 Billion Euros Through 2018

The latest on Greece's financial crisis (all times local):

1 a.m.


The International Monetary Fund says Greece will need debt relief and 85 billion euros ($95 billion) in new financing through 2018 because its situation has deteriorated since it closed its banks June 29.

Greece and its creditors reached a bailout agreement Monday that requires Greece to enact painful budget cuts and economic reforms but allows it to keep using the euro currency.

But the IMF said Tuesday that "Greece's debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far."

Earlier this month, the IMF said Greece needed about 60 billion euros through 2018. But it says Greece's debts will peak over the next two years at 200 percent of economic output, much higher than earlier estimates.


10:25 p.m.

Prime Minister Alexis Tsipras says he won't resign despite being pressed to impose more austerity measures in Greece.

In an interview with state TV on Tuesday, Tsipras said "I will not run away from my responsibilities."

Tsipras is facing growing dissent within his left-wing Syriza party after breaking election campaign promises to reach a deal for a third bailout.

The prime minister criticized the deal, but said it was the best Greece could get.

Tsipras said "the policies imposed on us were irrational ... But the policies offer a course out of the crisis."


8:30 p.m.

President Barack Obama has welcomed the agreement between Greece and its creditors.

In a statement Tuesday, the White House said Obama considered "the agreement a positive step that could help underpin a return to growth and debt stability in Greece" but noted that "further work will be required."

The statement followed Obama's telephone calls with French President Francois Hollande, German Chancellor Angela Merkel, British Prime Minister David Cameron and Federica Mogherini, the European Union's high representative for foreign affairs and security policy.

On Monday, the U.S. Treasury Secretary Jacob Lew had said the deal was in the best interests of Greece, Europe and the global economy.


7:15 p.m.

Greece's finance ministry says the draft bill needed to start talks on Greece's third bailout has been submitted to Parliament.

The bill will be discussed Wednesday and voted on later than night. It includes reforms to Greece's consumer tax.

The deal Prime Minister Alexis Tsipras agreed to after a marathon 17-hour eurozone summit on Monday has left him facing a backlash at home. Many in his radical left Syriza party have indicated they will refuse to vote for the deal because it goes back on election pledges to repeal austerity.

The bill is expected to pass with votes from opposition parties, who have said they will support it as it was the only way to ensure Greece remains in the euro currency.


3:55 p.m.

Valdis Dombrovskis, the European Union's euro commissioner, says the Greek crisis has symbolized the need for closer cooperation between the countries that use the single currency.

Dombrovskis says Tuesday that there's a big need to "strengthen the economic and monetary union."

However, he notes that the lack of European market turmoil during the Greek crisis shows that progress has been made over the past five years since the region's debt crisis first exploded.

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