Greek government proposes third Eurozone bailout on the eve of IMF default

The Greek government is making one final throw of the dice. Just hours before Greece is set to default on its €1.55 billion payment to the IMF, Athens has proposed a new two year bailout from the Eurozone, funded by the European Stability Mechanism set up in 2012.

Asking for a third bailout within hours of the second one drawing to a close shows just how keen the Greek government is to remain in the Eurozone. But this does not mean they are giving into their creditors’ demands. In a statement this afternoon, the Greek government said it still wants better terms:

‘From the first moment, we made clear that the decision to hold a referendum is not the end but the continuation of negotiations for better terms for the Greek people … the Greek government will until the end seek a viable agreement within the euro.’