Greek PM concedes to creditors

Alexis Tsipras says a proposal sent by the EC could be accepted in exchange for an extension.

FILE: Protesters participate in a demonstration calling for a ‘No’ vote in the forthcoming referendum on bailout conditions set by the country’s creditors, in front of the Greek parliament in Athens on 29 June 2015. Picture: AFP.

ATHENS - Greek Prime Minister Alexis Tsipras says his government is willing to accept an offer from creditors, but with several modifications, including maintaining a tax break for islands and delaying some pension reform by a few months.

In a letter sent to creditors, Tsipras says a proposal sent by the European Commission on Sunday could be accepted in exchange for an extension of the country's bailout programme and new rescue loans.

But it asks creditors for gradual changes to pension and labour market reforms as well introducing a smaller cut to military spending this year.

As things stand, the situation is changing rapidly and the nation is waiting to hear from the government.

Tsipras is expected to address the public soon.

According to the The Financial Times, Tsipras has sent a new letter to institutions saying he is willing to negotiate on the previous proposals.

Meanwhile, German chancellor Angela Merkel has emphasised there will be no negotiations on a new bailout before Sunday's referendum.

In a live address a short while ago the German chancellor said that just as Greeks had the right to hold the referendum, the 18 other euro countries had the right to react.

Merkel said while the current situation was challenging, it was the Greek people who would suffer most.