Greek Bailout On As Economic Reforms Approved

Greece is on course to secure its four-month bailout extension, with its economic reform plan being cautiously accepted by creditors.

The list of measures was submitted just ahead of a midnight deadline last night to Eurogroup president Jeroen Dijsselbloem and representatives of the European Commission, the European Central Bank (ECB) and International Monetary Fund (IMF).

The plans include a crackdown on smuggling, tax evasion and corruption.

After they were given the nod by creditors, investor confidence sent London's FTSE 100 to an all-time high - above the 6,950 intra-day record set at the end of 1999. The Brent crude oil price increasing to $60 was another factor in the breakthrough.

Proposals to tackle what is described as Greece's "humanitarian crisis" were also put forward alongside commitments they would not hurt its budget.

The document contained a list of promises but offered little in terms of financial figures, prompting IMF chief Christine Lagarde to criticise it as "not very specific" - though she said the Greek plan was sufficient to receive the aid programme.

She said: "In quite a few areas including perhaps the most important ones, the letter is not conveying clear assurances
that the government intends to undertake the reforms envisaged."

Among other areas of concern, she cited pensions and value-added tax policy as well as labour market reforms.

The Slovakian finance minister tweeted: "Eurozone deal with #Greece reached on Fri holds.

"Greeks have lots of heavy-lifting to do until end-April. We all want to see numbers now."

A Eurogroup statement said: "We call on the Greek authorities to further develop and broaden the list of reform measures, based on the current arrangement, in close co-ordination with the institutions in order to allow for a speedy and successful conclusion of the review."

With the bailout extension being approved in principle by finance ministers, the ECB and IMF the only remaining hurdle is a rubber-stamping exercise in the national parliaments of the 19-nation single currency area.

It is understood the Greek anti-austerity government, led by Alexis Tsipras, took its time to compile the list of commitments as it was anxious to be seen to be delivering its promises to the Greek people on tackling poverty following six years of recession, while also securing support from creditors.

Reports suggested members of his Syriza party felt the balance had been tipped too far towards the demands of the lenders.

On Friday, Mr Tsipras declared victory in the country's battle to secure new financial support though critics suggested the deal amounted to a new bailout in all but name.

Germany's finance minister Wolfgang Schaeuble, who was the most vocal critic of Greece's efforts to seek a new loan without strict bailout conditions attached, has paved the way for a possible German parliamentary vote this week.

The move, reported by the Handelsblatt newspaper and expected on Friday, is dependent on the reform proposals from Greece being accepted by the ECB, European Commission and IMF.