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ESM confirms receiving formal aid request from Greece

Xinhua, July 9, 2015 Adjust font size:

The European Stability Mechanism (ESM) have received a formal request for bailout aid from Greece to avoid Greek default and Grexit, a spokesperson of ESM said on Wednesday.

The request has asked for a three-year loan from the bailout fund, but the anonymous official declined to mention the amount.

The Greek Finance Ministry on Wednesday said in a statement that Greece's government pledged the immediate implementation of reforms on the formal proposal tabled.

"Greece seeks from the ESM a loan facility with an availability period of three years ... The loan will be used to meet Greece's debt obligations and ensure stability of the financial system," read the letter signed by Finance Minister Euclid Tsakalotos, according to the press release.

"Consistent with the principles of this medium to long term program, the Republic is committed to a comprehensive set of reforms and measures to be implemented in the areas of fiscal sustainability, financial stability and long term economic growth," added the Greek official.

"Within the framework of the program, we propose to immediately implement a set of measures as early as the beginning of next week including tax reform related measures and pension related measures," he stressed.

The Greek minister reiterated the country's commitment to honor its financial obligations to all creditors in a full and timely manner and to remain a member of the euro zone and respect the rules and obligations as a member state.

Eurogroup head Jeroen Dijsselbloem has urged Greece to sent a request letter on Wednesday morning to ESM after Tuesday's meeting of euro zone finance ministers, saying it is the first step to restart negotiation.

He noted that the group will ask the European Union institutions to assess the proposal, looking at the financial situation in Greece and their finances and debt sustainability.

"And then the institutions will come back to us, and we will see whether we can formally start the negotiations," he said.

The request was submitted in the light of the clear ultimatum euro zone leaders issued after a summit in Brussels on Tuesday night. Euro zone partners said bluntly that without action, the game would be over for Greece on July 12. Endit