Greece makes formal plea for loan extension to its $275bn debt

Greece has formally lodged its bid for a loan extension despite fierce opposition to any deviation from its current bailout deal, which is due to expire at the end of the month. The country’s new anti-austerity government is seeking a compromise to break the deadlock with its European creditors, especially Germany, as it runs the risk of running out of cash and defaulting on its debts. It hopes a six-month bridging loan can be agreed while negotiations continue on a more permanent deal to consign the terms of its bailout to history.

We are doing everything to reach a mutually beneficial agreement. Our aim is to conclude this agreement soon.

Government spokesman Gabriel Sakellaridis

The details of the request have not been made public but the Reuters news agency said it had seen a document which represented a significant compromise on previous Greek demands. The letter pledged  to honour all Greek debts and not take unilateral action that would undermine agreed fiscal targets. The government of Alexis Tsipras - elected on an anti-bailout platform - blames the conditions of the rescue for hampering the country’s recovery and leading to a deterioration of living standards. Unemployment remains at more than 25%.

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