NEWS
07/08/2015 06:24 EDT | Updated 07/08/2016 01:12 EDT

The Latest: Greece makes submission for rescue deal from Europe's bailout fund

ATHENS, Greece — The latest on the Greek financial crisis (all times Athens local):

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1:10 p.m.

Greece has submitted its request for a rescue deal from Europe's bailout fund.

Michel Reijns, the spokesman for the eurozone's top official Jeroen Dijsselbloem, says Greece submitted the request for a new support program from the European Stability Mechanism Wednesday morning.

The government's request is the first step in a process toward a new bailout for the debt-laden country.

Athens has to follow the request up with a detailed plan by the end of Thursday of how the government plans to reform its economy if it is to receive fresh bailout cash to stave off bankruptcy and a possible exit from the euro.

Greece has been effectively told it has to have a deal in place Sunday when the leaders of the 28 EU nations meet in Brussels.

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12:55 p.m.

Donald Tusk, who chairs meetings of European leaders, has harked back to one of Greece's famous sons to urge a resolution of the country's crisis: The historian Plutarch.

"'To find fault is easy, to do better may be difficult,'" Tusk said in a speech to European lawmakers. "I hope doing better is not so difficult as Plutarch once thought. Let us prove him wrong."

Tusk says the European Union is in a "race against time to rebuild trust" as it frantically searches for a way out of months of impasse.

Tusk warned that "our inability to find agreement may lead to the bankruptcy of Greece and insolvency of its banking system."

In a tweet, he added that if a deal can't be brokered this week, "Everyone will lose."

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12:35 p.m.

European stock markets were solid as guarded optimism over the prospects of a deal between Greece and its creditors in time to avoid a Greek exit from the euro.

At a summit of the eurozone's 19 leaders Tuesday, Greece was effectively told it must have a reform plan agreed by Sunday or face an exit from the euro. Sunday's summit will involve the leaders of all 28 European Union nations.

"The support for eurozone membership in Greece is clear and the political and economic costs of capital controls are rising," said George Saravelos, an analyst at Deutsche Bank. "But it is a close call."

That seems to be the general view in markets with the Stoxx 50 index of leading European shares and Germany's DAX both up 0.1 per cent. The euro rose 0.3 per cent to $1.1043.

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12:05 p.m.

Greek Prime Minister Alexis Tsipras says his country has submitted a broad proposal to get another rescue plan and will present details in the coming days.

His government faces a Thursday deadline to present the detailed plan on how to save Greece from financial ruin, before a European Union summit Sunday.

Tsipras says his country wants a deal that will mean a definitive end to Greece's protracted financial crisis, and that last Sunday's referendum result does not mean a break with Europe.

Speaking to the European Parliament in Strasbourg on Wednesday, Tsipras says Greece's troubles date to long before he took office five months ago.

European leaders have readied a "Grexit scenario" about a possible exit from the euro.

The Associated Press