"New Greek proposals received by Eurogroup President Dijsselbloem," said the spokesman for the chair of eurozone finance ministers, Jeroen Dijsselbloem.
— Michel Reijns (@MichelReijns) July 9, 2015
A proposal had been promised by midnight on Thursday, and will now likely be reviewed by creditors over the next few days before being presented at the EU Summit on Sunday.
While no official details of the proposal have been provided at this time, sources told Sputnik that the Greek government was offering to overhaul its pension system, saving up to half percent of GDP in 2015, and up to 1% annually in the following years.
"The new fiscal path is premised on a primary surplus target of (1,2,3), and 3.5 percent of GDP in 2015, 2016, 2017 and 2018," reads a statement which outlines Greece's new financial strategy.
Sources also indicate that tax rates could rise. For corporations, taxes could increase from 26% to 28%, and income collected from rent payments could also see a tax increase, as well as taxes on television advertising.
"We will consider some compensating measures, in case of fiscal shortfalls: Increase the tax rate to income for rents, for annual incomes below 12,000 euros to 15% (FROM 11%) with an additional revenue of 160 million euros and for annual incomes above 12,000 euros to 35% (from 33%) with an additional revenue of 40 million euros," the statement reads.
In healthcare, the reforms could reduce the price of off-patent drugs by 50%.
Sources also suggest Greece may cut its defense spending by as much 100 million euros. The government may also cut early retirement.
Greece had previously indicated that it would ask creditors for a three-year loan facility from the European Stability Mechanism (ESM). Athens also listed a number of measures which could be implemented as soon as next week, including pension cuts and tax reform.
"We will also include additional actions that the Republic will undertake to further strengthen and modernize its economy," the Greek finance minister said in a statement.
On Wednesday, Greek Prime Minister Alexis Tsipras had promised "very specific proposals" for a "fair and sustainable solution" to the debt crisis.
"All of the political forces in Greece, the leaders, came around the same table, and we came up with a framework on the basis of which tomorrow we are going to, once again, to come up with some very specific proposals for a fair and sustainable solution which will bring about fair reforms as well," Tsipras said in a statement.
European Union officials have urged PM Tsipras to come to an agreement which would prevent the country's expulsion from the eurozone.
"Inability to find agreement may lead to bankruptcy of Greece and insolvency of the banking system. Everyone will lose," European Council President Donald Tusk said on Wednesday.
With an overall debt of approximately $350 billion, Greece's next payment of $3.9 billion is due to the European Central Bank on July 20.