BRUSSELS—Greece and its international creditors on Friday moved closer to a deal which would allow the cash-strapped country to avoid a default and stay in the euro currency club, after Prime Minister Alexis Tsipras made a second set of concessions within a week, officials said.
Greece has agreed to cut pensions to a level very close to what creditors have demanded before they release new loans, officials said on condition of anonymity because of the sensitivity of the negotiations. The move comes only days after Greece agreed to 8 billion euros in austerity cuts and new taxes over two years.
After the first Greek proposal, Germany and other creditors, particularly the International Monetary Fund, were concerned Athens would rely too much on business taxes that could hurt growth. They insisted Greece had to do more.
