Greece is seeking a new bailout from the Eurozone, just hours before it is scheduled to default on an approximately US$1.8 billion loan payment to the International Monetary Fund.
The Greek government submitted a request on Tuesday for a two-year bailout program from the European Stability Mechanism (ESM) to cover it’s debt and financial needs.
"The Greek government proposed Tuesday a two-year agreement with the European Stability Mechanism in order to fully cover its financing needs and the restructuring of its debt," according to a statement issued by the Greek prime minister's office.
The ESM, established in 2012, was created as a means to handle financial crises in the eurozone and keep the single currency region stable.
The statement was issued hours before the county’s current bailout expires and it defaults on a loan repayment to the International Monetary Fund.
Greece and its official creditors have been locked in negotiations since early 2015 regarding the release of the final tranche of funding under the second bailout.