Eurozone leaders have reached a compromise deal over a new Greek rescue plan, FTAdviser sister publication the Financial Times reports.
The agreement thrashed out by Angela Merkel, François Hollande and Alexis Tsipras was unanimously backed by other leaders.
According to the FT, in all night talks, Germany piled the pressure on Greece to “implement bold reforms” and accept a “high level of external economic supervision” in return for a possible €82bn-€86bn (£58.8bn-£61.7bn) bailout.
Greek prime minister Mr Tsipras appeared to agree to pass “tough new reform laws”, including on tax and pensions by Wednesday (15 July) and prepare further rapid reforms this month.
But he and his creditors remained divided over other key issues, notably the role of the International Monetary Fund and a German-led plan to put up to €50bn (£35.8bn) in assets into an externally managed fund for future privatisation, the FT said.
The euro jumped on news of a deal, up to $1.1175 against the dollar, while Bunds prices were sharply weaker, showing much lower demand for safe havens.
Last week, the Greek government said banks will be closed until at least midnight on 13 July and implemented restrictions on its banking system.
The UK’s Department for Work and Pensions stated that international payments into Greece are exempt from these restrictions, with state and public service pension payments continuing to be made into Greek accounts in the usual way.
“The situation remains fast moving and uncertain, and the government recognises customers may be concerned,” read a statement, adding that the DWP will attempt to contact people that draw a British State Pension from a Greek bank account and help people to switch these payments to a non-Greek bank account if they wish.
donia.o’loughlin@ft.com
