Fund’s leaked debt sustainability report shows that Greece’s public debt is likely to peak at 200% of national income within the next two years 
 
 The International Monetary Fund has warned that Greece will require far more generous debt relief than is currently on offer from its creditors, as MPs in Athens prepare for a crucial vote on Wednesday on a new bailout plan. An IMF report leaked to Reuters shows that Greece’s public debt is likely to peak at 200% of its national income within the next two years, with the risk that the actual outcome could be even worse. 
 
 The IMF position on Greece – explained Read more 
 
 The debt sustainability analysis comes on the eve of a crucial vote in the Greek parliament, when the prime minister, Alexis Tsipras, will seek approval for the fresh austerity measures demanded by the eurozone in return for a three-year rescue package worth up to €86bn (£61bn). 
 
 The report highlights the IMF’s scepticism about Greece’s ability to meet the ultra-tough budget targets insisted upon by its European creditors, and suggests that Athens should receive a 30-year grace period before it has to start paying off its debts. 
 
 Putting into question the fund’s involvement in the bailout, the report paints a far darker picture of Greece’s public finances than that contained in the blueprint released at the end of the marathon eurozone leaders’ summit on Monday. “The dramatic deterioration in debt sustainability points to the need for debt relief on a scale that would need to go well beyond what has been under consideration to date – and what has been proposed by the ESM,” the IMF said, referring to the European stability mechanism bailout fund, which will be used to bankroll the Greek bailout. 
 
 Greek crisis: MPs debate bailout after IMF demands debt relief - live updates Read more 
 
 The IMF last issued an update on Greece two weeks ago, but its new assessment comes after a period when cash withdrawals from banks have been limited to €60 a day and businesses have been starved of working capital. 
 
 The closure of banks and the introduction of capital controls were “extracting a heavy toll on the banking system and the economy, leading to a further significant deterioration in debt sustainability relative to what was projected in our recently published DSA,” the IMF said. 
 
 Two weeks ago, the fund estimated that Greek debt would peak at 177% of GDP and fall to 142% by 2022. It now believes the debt ratio will still be 170% in 2022 after hitting a peak of 200%. 
 
 The IMF has consistently urged deeper debt relief throughout the Greek crisis, but has met resistance from European finance ministers, who have been unwilling to make their taxpayers pay the cost of a write down. Tsipras has also insisted that debt relief must form an important part of the package, but a statement by Eurozone leaders on Monday said only that further measures might be taken provided Greece adhered in full to the reforms demanded by its creditors. 
 
 Athens parliament: where do MPs stand over the Greek bailout deal? Read more 
 
 In the leaked report, the IMF says that Greece’s debts threaten to be unsustainable for decades, and that its financing needs will rise so that they are above the 15% of national income level deemed safe. The IMF adds that unless European creditors agree to an extended grace period, they face the choice of either annual transfers to the Greek budget, or “deep upfront haircuts”, the term for the cancellation of part of the debt. IMF sources confirmed that an updated debt sustainability analysis had been prepared by staff and would be discussed by the organisation’s executive board. 
 
 Unless the IMF can convince itself that Greece’s debts are sustainable, it would be forbidden by its own rules to put money into a new bailout. The assumption has been that the fund would provide €16.4bn – around 25% of the total – with the rest coming from the ESM. 
 
 The European commission, one of Greece’s three creditors alongside the IMF and the European Central Bank, sought to play down the report. A commission spokeswoman said that the IMF and the commission had together signed off on a different debt sustainability document. This was the paper sent to eurozone finance ministers on Saturday and formed the basis for the bailout agreement signed off by eurozone leaders on Monday morning, she said. 
 
 Alexis Tsipras aims to steer eurozone bailout plan through Greek parliament Read more 
 
 Reports of renewed IMF concerns came as Tsipras tried to convince dissident MPs in his own Syriza party to back another round of austerity. Ahead of the make-or-break vote in Athens’s parliament, Tsipras held back-to-back meetings as he attempted to rally support for measures at total variance with the rationale of his radical left party. Creditors have given the Greek government until Wednesday to push controversial reforms, including sales tax increases and pension reforms, through parliament. 
 
 Appalled by Tsipras’s volte-face, an estimated 35 Syriza MPs signalled on Tuesday night that they would vote against the measures, arguing that the “recessionary policies” will only worsen the record levels of poverty and unemployment Greece has already suffered. Panagiotis Lafazanis, the energy minister who heads Syriza’s Left Platform, implored the prime minister to turn down the terms. He called the proposals the work of “economic murderers” intent on destroying Greece. 
 
 Even if it was endorsed by the 300-seat House with the help of opposition parties – as seems likely – “it will never be passed by the people who effectively will eradicate it with their unity and struggles,” Lafazanis said. 
 
 History shows how the Greek crisis could pan out | Letters Read more 
 
 With Tsipras’ own position looking increasingly vulnerable, the country appears headed for fresh political tumult. On Tuesday night government insiders insisted the prime minister had no intention of standing down, saying he would probably attempt to clear the political terrain with a cabinet reshuffle on Thursday. 
 
 
 
 Tsipras told public television last night: “The worst thing a captain could do while he is steering a ship during a storm, as difficult as it is, would be to abandon the helm.” 
 
 
 
 But if losses are heavy, and he loses his parliamentary majority, the young leader might also be forced to from a cross-party government of national unity. 
 
 “Political developments inside Syriza will be rapid and dramatic,” said professor Dimitris Keridis who teaches political science at Athens’ Panteion University. 
 
 “But we will see a realignment in Greek parliamentary politics in support of the deal which, hopefully, will be cathartic and provide stability,” he said. “Tsipras is being asked to pay for the sins of a previous political class. The great irony is a radical leftist will now have to impose all the reforms that were never passed before, neo-liberal measures that he has always opposed.” 
 
 The neo-Nazi Golden Dawn party quickly sought to capitalise on the popular anger that the deal is bound to unleash. “Golden Dawn will resist the new memorandum that the government of the left will sign with the complete support of New Democracy, To Potami and Pasok,” said the organisation’s leader Nikos Michaloliakos, referring to the opposition parties. “An avalanche of taxes is coming. New annihilating measures that will mainly affect the country’s youth, that will increase unemployment and hit farmers who are the soul of the nation, are coming. From every place in this land the battle will continue … so that the plans of foreign rule are not passed.” ||||| ATHENS, Greece (AP) — The latest on Greece's financial crisis (all times local): 
 
 A shopkeeper waits for customers at a fishing market in central Athens, Wednesday, July 15, 2015. Greece's Parliament votes Wednesday on an 85-billion-euro bailout deal meant to prevent the country's... (Associated Press) 
 
 A woman looks at fish in a fishing market in central Athens, Wednesday, July 15, 2015. Greece's Parliament votes Wednesday on an 85-billion-euro bailout deal meant to prevent the country's economy from... (Associated Press) 
 
 In this photo released by Greek Prime Minister's office on Tuesday, July 14, 2015, Greece's Prime Minister Alexis Tsirpas, right, speaks at journalists Panos Haritos and Antonis Alafogiorgos during an... (Associated Press) 
 
 Pensioners wait for the opening of the national bank of Greece to withdraw a maximum of 120 euros ($134) for the week in central Athens, Wednesday, July 15, 2015. Greece's Parliament votes Wednesday on... (Associated Press) 
 
 Demonstrators gather near the Greek Parliament during a rally against the government's agreement with its creditors in Athens, in central Athens, Tuesday, July 14, 2015. The eurozone's top official says... (Associated Press) 
 
 ___ 
 
 11:45 a.m. 
 
 Greece's finance ministry says the banks will remain closed through Thursday. 
 
 The ministry says the transactions that can be carried out at the few bank branches that are allowed to open are being broadened. Apart from allowing pensioners without bank cards to withdraw 120 euros per week, they will also process payments for credit card bills, debts to the state like taxes and utility bills, and the payment of insurance company bills. 
 
 They will also allow the transfer of funds between accounts in the same bank. 
 
 Banks have been shut in Greece since June 29 and capital controls have been imposed restricting ATM cash withdrawals to 60 euros per day, and to 120 euros per week for pensioners and the unemployed without bank cards. Credit and debit card payments within the country are allowed, as are electronic banking transactions within the country. Bill payments abroad or sending funds abroad require special permission. 
 
 ___ 
 
 11:40 a.m. 
 
 Spanish Prime Minister Mariano Rajoy says he will put the new Greek rescue plan up for debate and vote in Parliament, even though it is not obligatory. 
 
 The proposal is more symbolic than anything. Rajoy backs the rescue deal and his conservative Popular Party's absolute majority in Parliament guarantees its approval. 
 
 Rajoy made the proposal Wednesday saying Spanish taxpayers were being asked to guarantee a lot of funds under the deal. He did not set a date for the vote. 
 
 He announced the measure during a parliamentary debate on the recent European Union summit. 
 
 Six EU countries are obliged to submit the plan to parliamentary vote. 
 
 ___ 
 
 9:30 a.m. 
 
 A German official says criticism by Greek Prime Minister Alexis Tsipras of the preliminary bailout deal with creditors isn't helpful. 
 
 Tsipras told state TV that "the policies imposed on us were irrational" but the deal was the best Greece could get. Creditors are demanding that the Greek Parliament pass initial legislation on Wednesday. 
 
 Germany led eurozone countries pushing a hard line. Deputy finance minister Jens Spahn criticized Tsipras' comments, telling ARD television: "This is not just about saving (money); it is about this country needing an idea of how it wants grow economically again, how it wants to be successful, change structures and win trust." 
 
 He added: "If someone then says, 'I don't actually stand by what I'm doing now,' I find that difficult. That doesn't necessarily create trust." ||||| Image copyright AFP/Getty Images 
 
 The International Monetary Fund (IMF) has fiercely criticised the bailout deal offered to Greece by the eurozone. 
 
 It said Greece's public debt was now "highly unsustainable" and urged debt relief on a scale "well beyond what has been under consideration to date". 
 
 The IMF told European finance ministers a new bailout should include measures to restructure the country's debt. 
 
 The European Commission has now proposed a €7bn (£5bn) "bridging" loan to help Greece pay debt interest. 
 
 Some of the money could be used to repay the IMF. 
 
 Greece has already missed two deadlines to pay the Fund €1.6bn (£1.1bn) in debt interest on loans it has already received, earning it the dubious honour of being the first major Western economy to default on an IMF loan. 
 
 The European Commission's latest proposal for bridging finance may face opposition from the UK and other non-eurozone members of the EU. 
 
 The proposal envisages providing short-term financing to Greece from the European Financial Stability Mechanism (EFSM). 
 
 This fund is backed by all 28 members of the EU, rather than just the 16 members of the eurozone, which would mean UK taxpayers contributing further to financial support for Greece. 
 
 While the UK and others may oppose the use of the EFSM, the disbursement of its funds requires only a two-thirds majority - otherwise known as a qualified majority - of member states to vote in favour of providing the loan for it to be approved. 
 
 'Deep haircuts' 
 
 The split between the the IMF and Greece's European creditors over how best to deal with the country's debt crisis has been hinted at before, but this is the first time such a disagreement has been made public. 
 
 On Tuesday, the IMF made public advice it had given to the Eurogroup of finance ministers at the weekend. 
 
 Follow the latest updates here 
 
 The IMF study said European Union countries would have to give Greece 30-years to repay all its European debt, including new loans, and a dramatic extension on the maturity of its debts. Without such extensions creditors might have to accept "deep upfront haircuts" on existing loans, the IMF added. 
 
 One senior IMF official said the fund would only participate in a third bailout for Greece if EU creditors produce "a clear plan". 
 
 The current deal "is by no means a comprehensive, detailed agreement", the official said. 
 
 BBC Europe correspondent Chris Morris says the IMF's report was written before the eurozone reached a deal with Greece in the early hours of Monday morning. 
 
 Our correspondent adds that its contents were shared with eurozone leaders in advance, so they already knew how unhappy the IMF was when they did the deal. 
 
 Under the new bailout terms, eurozone governments will contribute between €40bn and €50bn to Greece's new three-year bailout, the IMF is expected to contribute another major chunk and the rest will come from selling off state assets and the financial markets. 
 
 The split between the IMF and the EU comes just hours before the Greek parliament is due to vote on a raft of economic reforms demanded of the Eurogroup over the weekend as a condition of a third Greek bailout. 
 
 Image copyright AFP/Getty Image caption A slogan in front of the Greek parliament reads 'Here lies Syriza, the party I once supported' 
 
 The measures - which face resistance from Prime Minister Alexis Tsipras' own MPs - include taxation increases and pension curbs. 
 
 Greece owes about 10% of its debt to the IMF. 
 
 It has missed two deadlines for repayment to the fund and is the first EU country ever to do so. 
 
 The IMF also said it regarded forecast rates of growth for Greece as unrealistically high. 
 
 Its analysis, released on Tuesday night, pointed to Greek government debt reaching a peak of close to 200% of GDP or national income - over the next two years, which it called "highly unsustainable". 
 
 The BBC's economics editor says the IMF's assessment makes it much harder for Mr Tsipras to persuade the Athens parliament to back the measures needed in Wednesday's votes. 
 
 It brings into question the validity of the reform measures demanded by the eurozone and endorses the kind of debt write-offs the Greek public have been arguing for, he adds. 
 
 Analysis: Robert Peston, BBC News, Economics editor 
 
 Why on earth should Greek MPs vote for a painful economic reform package which the IMF - the supposed global arbiter of these things - does not believe will put the country back on the path to prosperity? 
 
 The eurozone creditors, and Germany in particular, forced Alexis Tsipras - against his strong preference - to accept IMF participation in the next formal bailout package to be negotiated if Greek MPs pass the initial reform measures tonight. 
 
 They told him, in effect, he would be turfed out of the eurozone and into national ruin unless he took more of the IMF's money and fiscal bossiness. 
 
 Which also look tragically comic tonight - with the IMF saying that if it's all the same to Mrs Merkel, it would rather not touch Greece with a barge pole. 
 
 Or to be tediously literal, the IMF has made it clear that it does not wish to participate in any further Greek bailout, unless Germany and the rest drop their vehement opposition to big write-offs of Greek debt. 
 
 Has IMF blown up Greece rescue? 
 
 Bailout deal at a glance 
 
 Tough test for Tsipras 
 
 On Tuesday, Mr Tsipras said in an interview on state television that he did not believe in the bailout offered but was willing to implement it to "avoid disaster for the country" and the collapse of the banks. 
 
 The conditional agreement to receive up to €86bn (£61bn; $95bn) from the EU over three years depends on further economic reforms - including the labour markets, banks and privatisation - being passed after Wednesday. 
 
 Hard-liners in Mr Tsipras' own Syriza party are likely to rebel and the junior coalition party, the Independent Greeks, have offered only limited support for the reforms 
 
 Media playback is unsupported on your device Media caption Greek reforms - in 60 seconds 
 
 Meanwhile, unions and trade associations representing those including civil servants, municipal workers and pharmacy owners have called or extended strikes to coincide with Wednesday's parliamentary votes. 
 
 Greece also faces an immediate cash crisis. Banks have been shut since 29 June. 
 
 Mr Tsipras warned banks are unlikely to reopen until the bailout deal is ratified, and this could take another month. 
 
 A suggestion of providing Greece with emergency funding under the EU-wide European Financial Stability Mechanism has been opposed by Britain, which is not part of the euro but is an European Union member. 
 
 Greek laws to be passed by Wednesday
– The deal that Greek Prime Minister Alexis Tsipras made under intense pressure after 17 hours of talks is a lousy one that will doom the country to many more years of economic misery, according to the International Monetary Fund. A leaked IMF report says that Greece's level of debt is "highly unsustainable" and for its economy to have any chance of recovering, creditors will have to either write off much of its debt or extend payment deadlines by 30 years, reports the Guardian. The leaking of the report, which was presented to eurozone leaders before talks began, appears to be a "tactical move" from the IMF, notes the New York Times, which describes Greece and the IMF as "strange bedfellows." The report reveals a serious split between the EU and the IMF on how to deal with Greek debt, and it was made public just hours before the Greek parliament was due to vote on the bailout plan, reports the BBC. In today's vote, Tsipras is unlikely to have the full support of his own left-wing party, which has been firmly opposed to tightened austerity measures like the ones the deal contains, notes the Guardian. Tsipras himself has strongly criticized the deal, saying "the policies imposed on us were irrational" but it was the best Greece could get, the AP reports. Ahead of the vote, one of the nation's two deputy finance ministers resigned in protest of the bailout deal, reports Enikos; per Reuters, Nadia Valavani said that "it is impossible to continue being a member of the government."