It happened: The Greek people voted Sunday against the last major bailout package the European establishment had offered it, throwing its future within the eurozone in jeopardy. The result was a big victory for Prime Minster Alexis Tsipras, the leftist firebrand who lead the Syriza party to victory at the beginning of the year.
And although U.S. futures sold off initially overnight, word that Greek Finance Minister Yanis Varoufakis had resigned on Tsipras’ request boosted sentiment and has mostly contained the fallout on Wall Street in Monday’s trading. MORE
The Greek government is now ready to sign on to a bailout package it threw out just days ago, but the about-face won’t fix the country’s crisis anytime soon.
Prime Minister Alexis Tsipras wrote to European leaders and the International Monetary Fund late Tuesday, accepting most of the conditions they had attached to releasing more cash, a European official told CNNMoney.
The official confirmed the contents of a letter first reported by the Financial Times.
European finance ministers will meet Wednesday to discuss the dramatic reversal in the Greek government’s position.
But it won’t spell the immediate end of Greece’s financial crisis, even if the about-face is given a favorable reception by the country’s creditors.
The only mechanism for Europe to hand over rescue loans expired at midnight. And Greece defaulted on a payment to the IMF Tuesday.
A new bailout agreement could take weeks to negotiate. Meanwhile, Greek banks remained shuttered, and the country’s economy weakens by the day.
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