Greece to ask creditors later Wednesday for extension of loan agreement

Economic IndicatorsAssociated Press

Greece's government spokesman says the country will officially present its creditors later Wednesday with a proposal aimed to save bailout talks from collapse.

Gavriil Sakellaridis told private Antenna TV the Greek plan would involve extending the international loan agreement that has kept Greece afloat since it nearly went bankrupt in 2010.

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The new radical left-led government in Athens refuses to accept any extension of the bailout deals that set the strict terms under which the loans were issued. Deep spending cuts and income reductions deepened an economic depression and sent unemployment levels above 25 percent.

It was unclear how the proposal would be met by creditors, who have given Greece until the end of the week to request an extension of the current bailout agreement.