Greece

The Greek government submitted legislation to parliament on Tuesday required by its international lenders to start talks on a multi-billion euro rescue package, the Irish Times reported. Prime minister Alexis Tsipras has until Wednesday night to get those measures adopted in the assembly. A first set of reforms triggered a rebellion in his party last week and passed only thanks to votes from pro-EU opposition parties. The second bill, though less divisive, will still be a test his weakened majority.

In a related story, the Financial Times reported that Athens has left a measure imposing higher taxes on farmers out of a reform bill that is essential to securing a new financial rescue worth up to €86bn. The bill, which was submitted to parliament on Tuesday, includes an overhaul of the civil justice system and the incorporation into Greek law of an EU directive on procedures for closing down banks in a crisis. The legislature will vote on the measure on Wednesday.

Reopening the doors of Greek banks on Monday was just the beginning. Restoring trust in the banks, so that customers will be willing to deposit their money again, is one of the most important tasks that Greek and eurozone officials will face as they try to get the economy moving again, the International New York Times reported. But undoing the damage wrought in recent months will take money and time, as well as agreement among quarreling eurozone nations.

Alexis Tsipras should never have hired Yanis Varoufakis as his finance minister, the Financial Times reported in a commentary. Or he should have listened to him, and kept him on. But instead the Greek prime minister chose the worst of all options. He followed Mr Varoufakis’ advice of rejecting the offer of the creditors — until last week.

Eurozone finance ministers agreed “in principle” to grant Greece an expensive third bailout designed to keep it in the euro. But the likelihood that the prospective three-year deal will fail—possibly before it starts, let alone is completed—is now estimated at higher than 50% by some at the center of events, The Wall Street Journal reported. In the almost six-year history of the debt crisis, never before has the facade of public optimism among leading actors crumbled like it has over the latest deal.

Greek banks face deep surgery including closures or mergers after a bailout but they are seen getting a brief reprieve with a capital injection before the painful overhaul begins. As part of a deal to secure new funding, Athens had to surrender much autonomy over its economy and this will include handing over more power to European institutions to decide the fate of its sick banks.

Under threat from the nation’s creditors to move quickly or lose any chance of obtaining a desperately needed new bailout package, Greece’s Parliament approved painful new austerity measures early Thursday, virtually guaranteeing that life would get harder for millions of Greeks, the International New York Times reported.

The International Monetary Fund said what everyone knew but would not admit when it laid out in gory detail late Tuesday how Greece could be crushed by its staggering debt unless creditors agreed to lighten the load, the International New York Times reported. The I.M.F. was not saying anything different from what it and its chief, Christine Lagarde, had quietly told eurozone leaders last weekend. But by going public with its warnings, the fund was putting the world on notice: Without some relief that might enable Greece to grow its way out of debt, the I.M.F.

The International Monetary Fund has sent its strongest signal that it may walk away from Greece’s new bailout programme, arguing in a confidential analysis that the country’s debt is skyrocketing and budget surplus targets set by Athens cannot be achieved, the Financial Times reported. In the three-page memo, sent to EU authorities at the weekend and obtained by the Financial Times, the IMF said the recent turmoil in the Greek economy would lead debt to peak at close to 200 per cent of economic output over the next two years.

The Greek government repaid Samurai notes maturing on Tuesday, according to bond agent Mizuho Bank, in a first sign the nation is honouring its obligations after reaching a deal with creditors, the Irish Times reported. Masako Shiono, a spokeswoman for Mizuho, confirmed the repayment. The outstanding amount was 11.67 billion yen ($95 million). The price of the securities fell to 44.73 yen against par on July 10th, compared with 80.35 yen on June 1st, the data show.