bailout program

The draft bill for the three-year rescue package worth about 85 billion euros ($93 billion) in loans includes harsh spending cuts and tax hikes that Prime Minister Alexis Tsipras has said he has no option but to implement.

His radical left Syriza party won elections in January on promises of repealing similar budget austerity imposed in return for Greece's previous bailouts.

After five months of fruitless negotiations, relations between Greece and its creditors crumbled further Saturday after Prime Minister Alexis Tsipras stunned them by calling for a referendum on the proposed reforms needed to get bailout loans.

The radical left-wing leader accused the creditors of using blackmail and ultimatums against his proud but struggling people. European officials called his move for a vote a foolish and rash gambit that effectively ended negotiations to keep Greece financially afloat.

Worried Greeks queued outside banks for cash amid the uncertainty, with eurozone finance ministers deciding to hold a meeting without Greece to assess how to keep the euro currency union stable in the face of heightened risks that Greece could drop out.

The government on Friday agreed to key reforms that are 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 creditors in return offered Greece a five-month extension to its bailout program, which would otherwise end Tuesday, leaving the country facing a financial meltdown.

Greece has agreed to reforms that are 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 creditors in return offered Greece a five-month extension to its bailout program, which was supposed to end Tuesday.

The concessions come only days after Greece proposed 8 billion euros in budget savings over two years.