What Next? More Twists and Turns Ahead for Greece

Greece's bailout deal isn't a deal — yet.

It only becomes one if Greece meets tough conditions, like quickly passing a slew of far-reaching economic reforms, cuts and privatizations.

After the Greek government dismayed creditors by repealing some economic measures and dragging its feet in negotiations, key lender states led by Germany took a hard line: Reforms first. Money afterward.

Whether the deal will then steer the Greek economy back to health and help it lower its debt remains uncertain.

"Doubts and concerns in our view outweigh optimism and euphoria," wrote Carsten Brzeski, chief economist at ING-DiBa in Frankfurt. "It starts with the fact that there actually is no deal, yet. It's a declaration of intent."

He recommended "that the champagne bottles should still remain in the fridge for a while."

Here's a look at Greece's situation.

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WHAT'S THE NEXT STEP FOR GREECE?

Under the deal struck with creditors during an all-night meeting in Brussels, the Greek parliament must approve by Wednesday key reforms. They include VAT tax increases and pension cuts, and safeguarding the full independence of Greece's statistics service, which at the start of the crisis in 2009 was found to have woefully misstated the country's finances for years.

More reforms have to be passed by July 20, including a new civil code that should streamline legal proceedings and lower business costs.

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WILL THAT HELP GREEK BANKS REOPEN?

That's the intent.

Greece's banks have been closed since the European Central Bank refused two weeks ago to allow them to draw more emergency credit. Once the legislation passes and Greece gets closer to financial rescue, the ECB may decide to permit more credit. It could do that anytime it can say a bailout deal is in the offing, but may wait until Thursday's meeting of its governing council — the day after the first Greek vote.

An increase in credit could enable the Greek banks to reopen and perhaps increase their withdrawal limit of 60 euros per day.

But analysts say some kind of limit on cash withdrawals and transfers will likely stay in place for months.

The closed banks have made normal commerce impossible and worsened the recession. Getting them open again is a top priority if the Greece economy is to recover.

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AFTER THAT, WILL GREECE GET ITS BAILOUT?

Not yet. Germany's parliament must also approve the start of negotiations, which officials said could happen Friday. Austria and France will also hold votes on the preliminary agreement.

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WHAT HAPPENS WHEN NEGOTIATIONS START?

Once Greece passes the reform laws, the institutions monitoring its finances — the European Union's executive Commission, the International Monetary Fund and the European Central Bank — will get a mandate to start talks. The Greeks will have to make more reforms, such as opening up closed professions, easing worker protections in labor law, and privatizing the national electricity grid.

They will also have to transfer government-owned businesses and assets into an independent privatization fund that will sell them off.

And the eurozone says that's just to get the talks started. At the end of the process, national parliaments have to sign off in Germany, Estonia, the Netherland, Finland, Austria and Slovakia. Only then can Greece tap the money from the bailout fund, the European Stability Mechanism.

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