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Sunday 4 December 2016

Greece crisis: Greeks capitulate offering tax hikes on shipping, restaurants ahead of €53.5bn bailout talks

A demonstrator waves a European Union flag in front of the Greek Parliament during a rally in Athens (AP)
A demonstrator waves a European Union flag in front of the Greek Parliament during a rally in Athens (AP)

Greece offered new measures including a tax hike on shipping companies and scrapping tax breaks for its islands in the latest proposal sent to creditors on Thursday for a cash-for-reforms deal, as Athens races to win new funds to avert bankruptcy.

Greeks are looking for more money but are offering €4bn extra in austerity, or €12bn, in bid to secure deal.

The government also plans to raise value added tax for restaurants, roll out pension reforms and to set a firm timetable for privatizations.

In return, Athens wants the creditors to review the primary surplus targets for Greece over the next four years and wants funding worth 53.5 billion euros to cover its loan obligations until the end of June 2018.

Greek Interior Minister Nikos Voutsis said on Friday he was optimistic the country could clinch a "good agreement" on terms of a bailout package submitted to creditors on Thursday night.

"We are optimistic of a very good agreement. We will discuss it and I'm optimistic all will go well," Voutsis told journalists ahead of a meeting of lawmakers from the ruling Syriza party in parliament

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