Eurogroup chief Jeroen Dijsselbloem says he's just received a request from Greece for a six-month loan extensionThe main question now is the detail of what Greece has submitted. It's it's a request for an extension of the existing bailout then it's a massive climb-down for the radical new government.
AFP are reporting that there'll be another eurogroup meeting (the finance ministers of each eurozone nation) on Friday to discuss it. That follows a meeting that collapsed on Monday, and another last Friday.
The bailout agreement as it stands is tied to significant austerity and economic reform policies that the government wants scrapped and rolled back, so up until now at least, they were refusing to agree to any continuation of the existing programme.
According to Bloomberg's Jonathan Ferro, it's an extension of the "current arrangement". The government is asking for more flexibility, but this looks a step back. Just a few days ago Prime Minister Alexis Tsipras said that Athens wouldn't compromise on the bailout.
There's more lines coming that make this look like a capitulation for Athens. The Guardian is reporting that the Greek government recognises that the existing bailout agreement is binding. It wants some concessions - like for the ECB to restore Greek government debt as collateral for the country's struggling banks - but the overall theme here is a climbdown.
If, on the other hand, the submission is for an extension on the loan element of the existing package alone, with significantly renegotiated conditions, it's extremely likely to be shot down by the eurogroup. Greek finance minister Yanis Varoufakis wanted a "bridging loan" without conditions to tide Athens over while a wider debt negotiation could be agreed.
Join the conversation about this story »
NOW WATCH: A 13-Year-Old Made A Revolutionary Invention Out Of Legos And Now Intel Is Investing In His Company