Greece proposes new bailout plan

Brussels

Greece early Friday laid out details of a new bailout plan to save it from the brink of financial collapse, offering a pensions overhaul and tax hikes in return for debt relief and a rescue loan from the eurozone.

The last-ditch package, handed in just two hours before a crucial deadline of midnight  Thursday, closely resembled an offer put forward by Greece's international paymasters before talks broke down last month, but there was no immediate word on whether it would be enough to unlock fresh aid.

"The Greek proposal... includes funding of the country's financing needs... for three years, debt adjustment and a front-loaded investment package of 35 billion euros ($38 billion)," a Greek government source said.

Eurozone officials will now study the details of the plan on Saturday before a make-or-break summit of all 28 European Union leaders the following day that could determine Greece's future in the single currency and even the bloc as a whole.

The summit comes a week after Greeks overwhelmingly voted to reject a fresh bailout package offered by the country's creditor institutions  the European Commission, the European Central Bank and the International Monetary Fund in return for new tax rises and spending cuts.

The final crescendo of Greece's long-running debt crisis forced the country's banks to close last month, bringing the economy to a standstill, while a ban on transferring money out of the country has isolated Greece from foreign suppliers of everything from food to medicine.

On Friday, the Greek parliament will be asked to authorise Prime Minister Alexis Tsipras and other senior officials to hold new talks on the basis of this latest bailout offer, state news agency said. The premier could face a challenge from hardliners in his Syriza party who reject any austerity no matter the cost.