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EU Lenders Give Green Light To Greek Reform Plans, New Bailout

European authorities believe Greece's sweeping budget reform plan is good enough to be the basis for a new bailout worth 74 billion euros, European Union sources said July 10.

The European Stability Mechanism is ready to consider putting up 58 billion euros, with another 16 billion euros coming from the International Monetary Fund in what would be a third round of debt relief, the sources said.

The recommendation of those creditors to accept Greece's plan as a starting point for a new bailout deal must be approved by eurozone finance ministers at a meeting July 11, and later will go before all 28 EU members at a summit July 12.

Greek Finance Minister Euclid Tsakalotos said he believes many of Greece's demands for debt relief will be accepted by the eurozone.

He said he was confident Greece will be permitted to roll over a debt of 27 billion euros held by the ESM and European Central Bank.

The Greek parliament is expected to vote shortly on the new package, which offers sweeping reforms of Greece's pension and tax systems in exchange for new loans and debt relief.

Based on reporting by AFP, dpa, and Reuters